LOCAL GOVERNMENT PENSION SCHEME APPEAL

 

SUPERANNUATION ACT 1972

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1995 (the 1995 regulations)

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

 

1.                  I refer to your letter of 25 February 2000 in which you appeal (under regulation 102 of the 1997 regulations) against the decision of Mr XXX, the Appointed Person for XXX Council (the county council), in relation to your local government pension scheme (LGPS) dispute with XXX Council (the council).

 

2.                  The Appointed Person determined that, whilst the pension estimates provided by the council contained errors, you did not suffer any financial loss as a result.  He also considered that as you had made it clear that you intended to seek early retirement prior to the estimates being provided, your decision to retire was not effected by the errors contained within them.

 

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 the statutory provisions governing the LGPS have been correctly applied in the circumstances.  The Secretary of State has no powers to direct the council to act outside the provisions of the regulations.

 

4.                  Secretary of State’s decision: The Secretary of State has considered all the representations and evidence, and has taken into account the appropriate regulations.  He finds that there are no provisions in the regulations to award compensation where claims are made that incorrect information has been provided with regard to the LGPS.  Like the Appointed Person, the Secretary of State cannot direct the council to act otherwise than in accordance with the regulations.  The Secretary of State accepts that, in this case, there is a prima facie case of maladministration by both the council and the county council on two fronts: the estimate they provided did not clearly show how the value of your benefits had been derived; and that, probably as a result, the estimate was significantly over-valued.  However, as you had already indicated, in your letter of 17 April 1996, that you intended to take early retirement, he does not consider that the estimate provided was instrumental in your decision to retire.  He does not consider therefore that you have suffered financial loss or injustice.  The Secretary of State has no power to order redress that would conflict with the requirements of the regulations, or to award compensation, in any case, even where maladministration is shown to have led to financial loss or injustice.  He therefore dismisses your appeal.  His decision confirms that made by the Appointed Person.  He is acting judicially and has no power to modify the way the regulations 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.

 

5.                  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 020 7233 8080).

 

6.                  The Pensions Ombudsman may investigate and determine any complaint of maladministration or any dispute of fact or law in relation to the local government pension scheme.  His address is 11 Belgrave Road, London, SW1V 1RB (telephone number 020 7834 9144).