LOCAL GOVERNMENT PENSION SCHEME APPEAL

 

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

 

1)      I refer to your letter of 28 October 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 Fund (the fund).

 

2)      In your application to the Appointed Person you explained that you had contracted to buy 5 years 63 days extra membership in the LGPS in 1996.  In March 1999 you were informed that due to an error the contracted extra membership was not paid for the period 31 October 1996 to March 1999; and that if you wanted this period to count you would need to pay £4,122.73.  If you did not pay the accumulated arrears your extra membership would be reduced by 4 years 77 days, the period you had not paid for.  You explained that you had not asked for the payments to stop and you consider you should not be penalised in this way.  The Appointed Person clarified the disagreement you had referred to him in his letter to you of 18 May 1999.  He understood that it could be summarised as “Failure to allow the employee to buy extra membership of his pension”. From the evidence available you have not disputed this.  The Appointed Person found that the payments had stopped due to a payroll error. He further found that XXX Council (the council) “... are happy to make arrangements to recover the amount of arrears, ..., and will make arrangements to recover them over the next 3 years ...”.

 

3)      In your appeal to the Secretary of State you explain that at no time did you ask your employer to stop payment to the pension scheme that the error was due to the council and that you are now being asked to put right that error when you took it in good faith that your wishes would be followed.

 

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 regulation refers to a matter relating to the LGPS, which effectively means whether provisions 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)      While it is clear that you are dissatisfied with the situation, the Secretary of State finds it difficult to see that you still have a disagreement within the meaning of the regulations as you have been given the opportunity to restore your pension position to where it would have been if the error had not been made in the first place.  Your concern that the council ceased to deduct your additional contributions in error has been addressed and the council have clearly offered to put the matter right.  There are no provisions in the 1997 regulations (or earlier regulations) for periods of extra membership, which the member has contracted to buy, to be granted without the member making the appropriate contributions.  As it appears to him that there is no outstanding disagreement the Secretary of State does not consider he can take any further action in the matter.

 

6)      The Secretary of State therefore dismisses your appeal.  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)      This completes the second stage of the internal dispute 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).

 

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