372          INDEX                                                                                                                   Our Ref: LGR85/18/74

Date:               July 1998

 

LOCAL GOVERNMENT PENSION APPEAL

 

SUPERANNUATION ACT 1972

LOCAL GOVERNMENT SUPERANNUATION SCHEME REGULATIONS 1986 (“the 1986 regulations”)

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1995 (“the 1995 regulations”)

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (“the 1997 regulations”)

 

1.         Thank you for your letter of 18 June following the decision of Mr XXX (under regulation 101 of the 1997 regulations), the Appointed Person for XXX Council, in which you ask the Secretary of State to consider a matter concerning your retirement benefits.

 

2.         It would appear from your letter that you are asking the Secretary of State to consider whether you can now pay contributions on the value of the leased car so that the value is taken into account in calculating your pension benefits.  You asked the appointed person to investigate why your employer had not informed you of the right to appeal to the Secretary of State to have your leased car allowance added to your annual salary for pension calculations when the regulations were changed.  When you lodged your appeal with the Appointed Person, the 1997 regulations were in force.  However at the time you wrote to your employer requesting that the value of your leased car be taken into account, the 1995 regulations were in force.  Regulation 20 and 21 of the 1997 regulations, formerly regulations D1 and D2 of the 1995 regulations, explain what constitutes pensionable remuneration.  These regulations replaced the 1986 regulations which had been amended by the Local Government Superannuation (Remuneration) Regulations 1992.  The amendment meant that an employee was no longer entitled to treat the money value to him of a car provided for his use by his employer as part of his pensionable remuneration (regulation C17 of the 1986 regulations) with effect from 31 December 1992.  The exclusion did not affect an employee who was paying contributions at the time the amendment was made but would at a later stage in certain circumstances (regulation C17 of the 1986 regulations).  A further amendment was made so that an employee could appeal to the Secretary of State that his pensionable remuneration should include the money value of the leased car.  However such an appeal had to be made by 31 March 1993 (regulation N9 of the 1986 regulations).  The 1995 regulations (regulation J5(4)) made it clear that no such appeal could then be made, nor can it under the Local Government Pension Scheme Regulations 1997 which came into force on 1 April 1998.  The Secretary of State therefore determines that he has no power to consider your appeal as it was made to him after 31 March 1993 and is therefore out of time.

 

3.         The Secretary of State notes that you contend that your former employer did not inform you of your right of appeal in 1992. At the time the amendment was made to the 1986 regulations the Occupational Pension Schemes (Disclosure of Information) Regulations 1986 applied.  There is a requirement under these regulations for information to be made available to members of an occupational pension scheme.    I see that Mr XXX indicated that in the event that the statutory provisions are not interpreted in your favour elsewhere the Pension Ombudsman may have a wider remit and be able to look at the non-statutory aspects of your claim. As the Secretary of State is unable to consider your appeal you may wish to consider whether it is appropriate to refer the matter to the Pensions Ombudsman.  His address, and the address of the Occupational Pensions Advisory Service (OPAS) who is available to assist members and beneficiaries in connection with difficulties which they have failed to resolve, is 11 Belgrave Road, London, SW1V 1RB.