Pension Ombudsman refuses to extend three-year limitation period
In a determination dated 24 December 2024, the Pension Ombudsman Service (POS) decided not to uphold a complaint against the NHS Business Services Authority (NHS BSA) regarding an additional tax charge to the Complainant caused by the payment of a pension arrears lump sum.
The Complainant was a member of the NHS Pension Scheme. In 2014, he suffered from an illness and applied for an incapacity pension which was rejected by NHS BSA on the grounds that the Complainant was likely to recover before his retirement. In 2021, the Complainant complained to the NHS BSA about the 2014 decision and his complaint was upheld and his pension backdated to 2014. However, the payment resulted in additional tax charges for the Complainant which led him to make a complaint to POS on the basis that more tax had been deducted than would have been deducted in 2014.
POS did not uphold the complaint on the basis that it related to a 2014 decision and therefore was out of time (as per the Limitation Act 1980) and that it was not reasonable to extend limitation via the three-year limitation period at section 14A. POS went on to determine that, whilst there had been errors in the recalculation and payment of the benefits in 2021, the NHS BSA had remedied these when the Complainant received a pensions arrears lump sum.
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