A couple of cases have been brought to our attention where it appears that an error has been made in calculating the uplift for inflation where, under the 1975 Scheme, an immediate pension is claimed on retirement and that pension is commuted (under the Resettlement Commutation Scheme only) to provide an abated pension and a larger lump sum.
In these cases when the full pension is restored at age 55, that figure, should be uprated by inflation increases to cover the time between exit and age 55.
What appears to have happened is that the inflation increases has been applied only to the abated pension (after the lump sum had been claimed) rather than to the full immediate pension.
We are checking this with the authorities. Has a mistake been made? And if so then is it a one off or does it apply to other cases? We will report back as a matter of urgency, and will as ever take up the cases of our members.