LOCAL GOVERNMENT PENSION APPEAL

SUPERANNUATION ACT 1972

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

1.                  I refer to your letter of 18 August 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 XXX, the Appointed Person in relation to your local government pension scheme (LGPS) dispute with the XXX Council (the council).

2.                  The Appointed Person upheld the council’s decision because the complaint was about maladministration and did not fall with the scope of the LGPS.  Your complaint is about loss of benefits when your pension was transferred from XXX plc to the LGPS.  You have requested the Secretary of State to consider the administration of this transfer.

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.  The Secretary of State has no powers to direct a local authority to act outside the provisions of the regulations.  It appears from the information available that you do not argue that the regulations have not been properly applied.

4.                  The question for decision: The question for decision by the Secretary of State is whether the council were required to arrange the transfer of your pension rights into the LGPS within the period for which its valuation was guaranteed.

5.                  Secretary of State’s decision: The Secretary of State has taken into account the appropriate regulations.  Regulation 121 of the 1997 regulations provides for the council to accept a transfer value from a non-LGPS scheme.  It does not compel the council to accept a transfer nor does it provide any time limits to process a transfer.  The Secretary of State therefore finds that the council were not required to arrange the transfer of your pension rights into the LGPS within the period for which its valuation was guaranteed.  His decision confirms that made by the Appointed Person.  Like the Appointed Person the Secretary of State cannot direct the council to act otherwise than in accordance with rules governing the LGPS.  Nor does he have any power to order redress or award compensation even where maladministration is proved.

6.                  This completes the second stage of the internal disputes resolution procedure.  The Secretary of State 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.

7.                  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).

8.                  The Pensions Ombudsman may investigate and determine any allegation of maladministration or 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).