Our Ref: LGR85/18/79 416 INDEX
September 1998
LOCAL GOVERNMENT PENSION APPEAL
LOCAL GOVERNMENT SUPERANNUATION REGULATIONS 1974 (“the 1974 regulations”)
LOCAL GOVERNMENT SUPERANNUATION REGULATIONS 1986 (“ the 1986 regulations”)
LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (“the 1997 regulations”)
1. I refer to your letters of 12 and 27 July 1998 in which you appeal (under regulation 102 of the 1997 regulations) against the decision of Mr XXX, the Appointed Person. The Appointed Person determined that the matters you had raised fall outside of his remit.
2. The Secretary of State considers that the questions for determination are whether:
a. a flat rate reduction of £44.20 has been deducted from your local government pension; and
b. you compensatory added years award should have become payable from 26 September 1995.
3. The Secretary of State has considered all the representations and evidence. Mr XXX has confirmed that the correspondence attached to your letter of 12 July 1998 is the evidence he took into account in reaching his decision.
4. Secretary of State’s determination:. The Secretary of State having taken into account the appropriate regulations, finds that:
a. a flat rate modification of £44.20 was deducted from your local government pension. The Secretary of State’s reasons and the regulations which he considers apply in your case are set out in the annex to this letter, which forms an integral part of the determination. His decision in respect of this question replaces the Appointed Person’s decision of 22 July 1998. In making his decision the Secretary of State is acting judicially and has no power to modify the application of the regulations to the facts of the case. 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 official may not discuss the case further.
b. like the Appointed Person, the Secretary of State’s powers under regulations 102 and 103 of the 1997 regulations are limited to reconsidering a disagreement about a matter relating to the local government pension scheme, which effectively means whether or not the pension scheme regulations have been correctly applied in the given circumstances. The award of compensatory added years or adjustments (clawback) are set out in the Local Government (Compensation for Premature Retirement) Regulations 1982 (the 1982 regulations) (now the Local Government (Discretionary Payments) Regulations 1996 (the 1996 regulations)). The Secretary of State has no powers under the 1982 or 1996 regulations to consider matters of disagreement between employees or former employees and their employing authority and determines accordingly. His decision, in respect of this question, confirms that made by the Appointed Person.
5. 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).
6. The Pensions Ombudsman may also investigate and determine any complaint or dispute of fact or law in relation to the local government pension scheme made or referred in accordance with the Pension Schemes Act 1993. His address is 11 Belgrave Road, London, SW1V 1RB (telephone number 0171 834 9144).
1. The following evidence has been received and taken into account:
a. from Mr XXX: letters dated 12 and 27 July 1998 with enclosures; and
b. from the Appointed Person: letter dated 22 July 1998 with enclosures (copies enclosed).
REGULATIONS CONSIDERED AND REASONS FOR DECISION
2. From the evidence submitted the following points have been noted:
a. you were employed by XXX Council until March 1986;
b. with effect from 1 April 1986 you became entitled to immediate payment of your lump sum and annual local government pension;
c. your annual local government pension was £8611.96;
d. you were awarded compensatory added years; and
e. at the age of 65 your local government pension was modified.
3. You believe the flat rate reduction of your pension at age 65 should have been £44.20. You calculate that a much higher reduction has been applied over successive years.
4. The XXX explained in their letter to you dated 27 July 1997 that your basic pension after modification would be £8567.76. They also showed the modified level of your pension with pension increases.
5. The Secretary of State in reaching his decision has had regard to the regulations, which in his view apply. At the time you became entitled to your local government pension the 1986 regulations were in force. Regulation 31 explains that Part F of the 1974 regulations applies if the benefit would have fallen to be reduced under those regulations. Part F of the 1974 regulations explains that the annual pension shall be reduced in certain circumstances, although they do not set out the level of the reduction. It is noted that you do not argue that such a reduction does not apply in your case, but that the amount should be £44.20. The Secretary of State notes that your basic pension was £8611.96 and from age 65 this was reduced to £8567.76, a reduction of £44.20. The Secretary of State therefore concludes that your local government pension was reduced by a once only reduction of £44.20.
6. It is noted that you consider further reductions have been made to your annual pension for the years 1994-95, 1995-6 and 1996-7. It appears from the council’s letter to you of 27 January 1997 that this may be related to the increases to the Guaranteed Minimum Pension paid by the DSS in your State Pension from your 65th birthday. Because this is a separate issue to the question you raised with the Appointed Person concerning the flat rate reduction of your pension the Secretary of State is unable to consider this as he can only reconsider on appeal issues which have first been raised with the Appointed Person. If you have any further questions about this you may wish, in the first place, to raise them with the council.