Many members regularly get early retirement pension quotations so they can keep track of their pension benefits. Willis Towers Watson (WTW), who are responsible for administering the pension schemes on behalf of the Trustee, changed the way those early retirement quotations were calculated but didn’t bother telling anyone.
Members who have had recent quotations have seen their pension benefits reduced significantly without any explanation whatsoever. And when members have raised questions, they’ve been fobbed off with half-baked explanations by WTW. According to WTW the calculation is now a ‘member specific value based early retirement calculation’ that considers individual factors like age, years left in the scheme, proportion of benefit that is GMP etc.
In response to complaints from members WTW has said that under the scheme rules the basis on which early retirement pensions are calculated can be changed at any time and the Trustee is under no obligation to tell members about the changes.
That’s a scandalous situation.
Now early retirement is in the gift of the Bank and it can set the terms for leaving early. However, the pension schemes are run for the benefit of members not actuaries or administrators. Elected Trustees – rather than ones in effect appointed by Lloyds – would not have allowed a fundamental change to be made without an explanation being provided.
The Trustee should now:
- Guarantee that no calculation changes will be made in future without first writing to members to explain the changes.
- Provide a detailed explanation, with examples, setting out how the calculations have been changed together with an impact assessment.
- Contact those members who have asked for quotations since the calculation methodology was changed making it clear that their pension benefits at normal retirement age remain unchanged.
Members with any questions on this Newsletter should contact the Union’s Advice Team on 01234 262868 (choose Option 1).
MEMBERS SHOULD PASS THIS NEWSLETTER ON TO THEIR COLLEAGUES SO THEY TOO CAN BENEFIT FROM THE ONLY INDEPENDENT TRADE UNION IN LLOYDS AND HALIFAX