Does GMP compound in deferment - NEW UPDATE

xylophone

You have not been  financially disadvantaged - you have suffered a "loss of expectation"?

You were a member of a  scheme with two sections, a COSR and a COMB. There was a GMP liability in both sections.

You left the sponsoring employer and became a deferred member.

The Trustees chose Fixed Rate revaluation for the GMP - at your DOL this was 7%.

Your total GMP  at DOL taking account of both sections was 

£1,196.52. This is not now in dispute.

This  total has been correctly revalued at 7%?

You will receive a  correctly calculated DB pension which includes the revalued GMP appertaining to that section of the scheme.

You will receive a  correctly calculated COMB pension which will include the GMP appertaining to that section of the scheme.

You will therefore receive all that you are due.

In effect what you are seeking is compensation for the disappointment caused by Mercer's mistake in effectively double counting the GMP?

Troytempest

Good summary, will report back when I have had a response from the official complaints process.

Troytempest

So I have had a reply to formal complaint. 

It concludes that errors were made by Mercer and that they are very disappointed by this but they can only pay what I am entitled to.

None of this is news but it gives me the option to take it to the Ombudsman on the basis of advice in the thread. 

Troytempest

So have now been through the formal complaints process.

Complaint rejected as they can only legally pay what is correct.  They accept errors were made and are very sorry and have offered a £500 compensation payment for the time and distress.

Based upon all the good advice here, the Ombudsman might award a bit more but not really worth the hassle.

xylophone

Complaint rejected as they can only legally pay what is correct. 

As we had anticipated.

£500 will buy a weekend away and a bottle of wine to drown your sorrows......

Marcon

Troytempest said:

So have now been through the formal complaints process.

Complaint rejected as they can only legally pay what is correct.  They accept errors were made and are very sorry and have offered a £500 compensation payment for the time and distress.

Based upon all the good advice here, the Ombudsman might award a bit more but not really worth the hassle.

Unlikely, if you look at the tariff awards: https://www.pensions-ombudsman.org.uk/sites/default/files/publication/files/Updated-Non-financial-injustice-September-2018-2_0.pdf (so a good outcome rather than one to fret over!).