Our Ref: LGR85/18/43 354 INDEX
15 June 1998
LOCAL GOVERNMENT PENSION APPEAL
SUPERANNUATION ACT 1972
LOCAL GOVERNMENT SUPERANNUATION TRANSFERABILITY OF PENSION RIGHTS BETWEEN THE LOCAL GOVERNMENT SUPERANNUATION SCHEME AND OTHER PENSION SCHEMES (the circular)
LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1995 (“the 1995 regulations”)
1. I refer to your letter of 30 March 1998 in which you appeal (under regulation J8 of the 1995 regulations) to the Secretary of State for the Environment, Transport and the Regions against the decision of Mr XXX, the Appointed Person. The Appointed Person upheld the decision of XX (the council) that the transfer value paid to the XXX Board (the board) was correct and that there was no requirement at the time the transfer was made for it to be made within any set time limits.
2. You explained that you were dissatisfied with the Appointed Person’s decision because there has been no recognition of the effect of the delay by the council to act upon your transfer request and no attempt made to rectify the serious loss of contributory service which resulted from this delay. You further contend that because of the failure by the council to progress your transfer request caused annoyance to the board and as a result the board treated you less sympathetically. Like the Appointed Person the Secretary of State’s powers under regulations J7 and J8 of the 1995 regulations are limited to reconsidering a disagreement about a matter in relation to the local government pension scheme, which effectively means whether or not the regulations have been correctly applied in the given circumstances. Where the regulations have been correctly applied he has no power to consider questions of the effect this may have at a later date or to rectify any loss that may have resulted from the actions taken in applying the regulations.
3. Although your transfer of pension rights was made under the arrangements set out in a departmental circular and not in statutory regulations the Secretary of State takes the view that he may consider the matter as if the provisions set out in the circular were regulations, because he considers it to be a “matter in relation to the scheme” under regulation J6.
4. The only question for determination by the Secretary of State therefore is whether a time limit applied in which the council had to make your transfer of pension rights to the board.
5. Secretary of State’s determination: The Secretary of State having taken into account the appropriate regulations, finds that for the purposes of the circular there was no time limit in which the council had to make your transfer of pension rights to the board. His decision confirms that made by the Appointed Person. The Secretary of State’s reasons and the circular which he considers apply in your case are set out in the annex to this letter, which forms an integral part of the determination. He is acting judicially and has no power to modify the application of the regulations to the facts of the case. Having made his determination he has no power to alter it but you may refer the matter to the Pensions Ombudsman or to the High Court. Because of this officials may not discuss the case further.
6. This completes the second stage of the internal disputes resolution procedure. If you believe there is any question of maladministration you may wish to ask the Pensions Ombudsman whether there is any question for him to consider. His address is 11 Belgrave Road, London, SW1V 1RB (telephone number 0171 834 9144).
7.The Occupational Pensions Advisory Service (OPAS) is available to assist members and beneficiaries in connection with difficulties which they have failed to resolve. His address is 11 Belgrave Road, London, SW1V 1RB (telephone number 0171 233 8080).
8. The Pensions Ombudsman may also investigate and determine any complaint or dispute of fact or law in relation to the local government pension scheme.
EVIDENCE RECEIVED
1. The following evidence has been received and taken into account:
a. from Mr XXX: letter dated 30 March 1998, with enclosures; and
b. from the Appointed Person; letter dated 9 April 1998, with enclosures (listed in the Department’s letter of 20 April 1998).
2. From the evidence submitted the following relevant points have been noted:
a. you left the employment of XXX Council (the council) on 22 July 1973;
b. in 1973 you requested that your pension rights be transferred to the board;
c. your pension rights were transferred to the board on 28 February 1975.
3. The Secretary of State in reaching his decision has had regard to the provisions, which in his view, apply. In December 1973 the Department of the Environment issued the circular setting out the provisions to be applied where a transfer of pension rights between local government and other pension schemes applied. The circular made no reference to a time limit in which a transfer value should be made. Provision was made for interest to be paid where the transfer value of a person’s pension rights was paid more than twelve months after they had left the local government pension scheme. It is noted that in your case interest was paid because the transfer value of your pension rights was paid more than twelve months after you had left the local government pension scheme.
4. The Secretary of State concludes therefore that there was no time limit in which the council had to make your transfer of pension rights to the board.