638 INDEX
LOCAL GOVERNMENT SUPERANNUTATION SCHEME REGULATIONS 1986 (the 1986 regulations)
LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)
1. I refer to your letter of 1 July 1999 in which you appeal (under regulation 102 of the 1997 regulations) to the Secretary of State for the Environment, Transport and the Regions against the decision of Mr XXX, the Appointed Person in relation to your local government pension scheme (LGPS) dispute with XXX Council (the council).
2. The Appointed Person concluded that your complaint was not a matter on which he could reach a decision as he had no means of redress on matters of maladministration.
3. 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 regulation refers to a matter relating to the LGPS, which effectively means whether provisions governing the LGPS have been correctly applied in the circumstances. There are no provisions to award compensation where claims are made that information has not been provided or incorrect advice given with regard to the LGPS. Like the Appointed Person the Secretary of State has no powers to direct a local authority to act outside the provisions of the regulations.
4. The question for decision: The complaint you referred to the Secretary of State was that you were given bad advice by the council’s pension section at the time you were deciding between purchasing additional service and paying AVC’s to the XXX (AVC provider) the council’s AVC provider. You also complain of errors by the council and the AVC provider which have only been put right by your vigilance and of delays in processing your retirement benefits.
5. The Secretary of State has considered all the representations and evidence. Copies of documents supplied by the Appointed Person were sent to you under cover of the department’s letter of 15 July 1999.
6. Secretary of State’s decision: The council were neither required nor empowered by the rules governing the LGPS to give advice on whether AVC’s or added years were preferable, as opposed to information on the options available. Your grievances essentially amount to maladministration. The Secretary of State has no power to order redress or award compensation even where maladministration is shown to have led to financial loss or injustice.
7. The Secretary of State’s decision confirms that made by the Appointed Person. His reasons and the regulatory provisions which he considers apply in yourcase are set out in the annex to this letter, which forms an integral part of this decision. He is acting judicially and has no power to modify the way the regulatory provisions apply to the facts of the case. Having made his decision he has no power to alter it and his officials cannot discuss the case further. The decision is binding and can only be overturned by a judgement of the High Court or the Pensions Ombudsman.
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 allegation of maladministrationor 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).