Ombudsman upholds pensions tax complaint against police

Police

The Pensions Ombudsman upheld a complaint against the Police and Crime Commissioner of South Wales over its failure to inform a police officer of the tax implications of re-employment on his retirement benefits.

The police officer, Mr Cherry, retired in June 2011 and was re-employed by the Commissioner within one month of receiving his retirement benefits. As a result, he lost his protected retirement age, leaving him liable to tax charges. Cherry argued that his employer had breached its duty of care by not informing him about the tax penalties.

In December 2015 the Ombudsman found that the Commissioner had no legal obligation to advise employees on tax and pension liabilities, but as a responsible employer it had a duty of care to inform Cherry about the tax implications of re-employment on his retirement benefits.