LOCAL GOVERNMENT PENSION APPEAL

 

THE LOCAL GOVERNMENT SUPERANNUATION ACTS 1937 TO 1953 (the 1937 to 1953 Acts)

SUPERANNUATION ACT 1972

LOCAL GOVERNMENT SUPERANNUATION REGULATIONS 1974 (the 1974 regulations)

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

 

1.      I refer to your letter of 10 June 1999 in which you appeal (under regulation 102 of the 1997 regulations) against the decision of Mr XXX, the Appointed Person.  The Appointed Person upheld the decision of the XXX Fund (the fund) not to sign an Equalisation Indemnity Certificate in relation to the proposed transfer of your pension rights to the Royal Insurance Group Staff Pension Scheme (RIGSPS).

 

2.      The question for decision: The question for decision by the Secretary of State is whether the fund are required to sign an Equalisation Indemnity Certificate where another pension provider requires one to be signed before accepting a transfer.

 

3.      The Secretary of State has considered all the representations and evidence.

 

4.      The Secretary of State’s powers under regulations 102 and 103 of the 1997 regulations are to reconsider the original disagreement referred to the Appointed Person under regulation 100.  This regulations refers to a matter relating to the LGPS, which effectively means whether the rules governing the LGPS have been correctly applied in the circumstances.  Like the Appointed Person the Secretary of State has no powers to direct a local authority to act outside the provisions of the regulations.

 

5.      The Appointed Person noted that it is the belief of both the fund and the Actuary that the fund cannot legally give such an indemnity, as the fund does not have the power to do so, nor do the Pensions Regulations allow any additional cost to be paid by the fund.  He found that the fund had not acted incorrectly.  He further noted that the fund and the Actuary had produced a statement concerning the equalisation of benefits which in their view should reassure the RIGSPS and allow them to accept your transfer.  It appears that the RIGSPS will not accept this and therefore will not accept the transfer.

 

6.      Secretary of State’s decision: The Secretary of State, having taken into account the appropriate regulations, finds that there are no requirements in the LGPS allowing the fund to sign an Equalisation Indemnity Certificate.  His decision confirms that of the Appointed Person.  The Secretary of State is acting judicially and has no power to modify the way the legislative provisions apply to the facts of the case.  Having made his decision he has no powers to alter it but you may refer the matter to the Pensions Ombudsman or to the High Court.  Because of this the Secretary of State’s officials cannot discuss the case further.

 

7.      Whilst there are no provisions allowing a local authority to sign an Equalisation Indemnity Certificate the Department has provided advice to the local authorities that we are satisfied that benefits in the LGPS have been equalised and that statements (but not an Equalisation Indemnity Certificate) to that effect can safely be given to the receiving fund.  If there is an inequality in GMPs this is linked to the differences in the state retirement age applicable to males and females.  European law allows member states to have unequal retirement ages.  The UK already has legislation in place to equalise retirement age in men and females on a phased basis from the year 2010 onwards.

 

8.      This completes the second stage of the internal disputes resolution procedure.  The Pensions Advisory Service (OPAS) is available to assist members and beneficiaries in connection with difficulties which they have failed to resolve.  Their address is 11 Belgrave Road, London, SW1V 1RB (telephone number 0171 233 8080).

 

9.      The Pensions Ombudsman may investigate and determine any complaint or dispute of fact or law in relation to the LGPS made or referred in accordance with the Pensions Schemes Act 1993.  His address is 11 Belgrave Road, London, SW1V 1RB (telephone number 0171 834 9144).

 

10.  A copy of this letter has been sent to the Appointed Person and the Pensions Manager.