The Pensions Ombudsman has ruled a member be allowed to transfer out of a suspected pensions liberation scheme in an momentous determination.

The Ombudsman ruled an active member, known as Mr X, of the NHS Scotland Pension Scheme, be allowed to transfer the whole of his pension to the Capita Oak Pension Scheme.

Although the Ombudsman ordered for the scheme to repay the transfer value of the original amount plus interest, it was also noted that it may be possible that a large proportion of the money invested was “already missing”.

Mr X had been induced by a promised 8 to 12 per cent return on his investment and, in March 2013, the sum of £367,601.81 was transferred to the scheme.

However, following the transfer and amid doubts of the legitimacy of the scheme, Mr X sought to transfer out. Mr X and his financial adviser made numerous attempts to contact the manager of the scheme, Imperial Trustee Services Limited, however Mr X did not receive a response in relation to his request to facilitate a transfer.

Law firm Eversheds said since the Ombudsman specifically chose not to comment on the circumstances that led to the transfer into the scheme, the decision is “perhaps of little direct value at this stage”.

“There is also a question over whether the Ombudsman would take the same approach if the transfer request had been made to a scheme where there was no concern over that scheme’s legitimacy, but rather the trustees of the transferring scheme had concerns about whether the funds were going to be sent to an illegitimate vehicle,” Eversheds added.

However, the firm said this particular case is “evidence that the Ombudsman is starting to make positive progress in its promised review of pension liberation cases”.

“Further, it has announced that it will publish a group of cases about people who wanted to transfer out, but whose transfers have been “blocked” by their pension schemes.

“This is likely to be of more relevance to those who find themselves involved in attempted pensions liberation. The list is expected to be published in the week commencing 5 January 2015 and a further update will follow that.”

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