622 INDEX
6 October 1999
LOCAL GOVERNMENT PENSION SCHEME APPEAL
LOCAL GOVERNMENT PENSION SHCEME REGULATIONS 1997 (the 1997 regulations)
1) I refer to your letter of 1 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 the XXX Fund (the fund).
2) The dispute which you asked the Appointed Person to consider was whether there had been serious maladministration by the fund, as your Annual Benefit Statement had incorrectly recorded a greater period of membership and as a result shown a higher value of benefits. The error resulted from an incorrect recording of the period of membership you were entitled to count following a transfer-in from another scheme. It was only discovered when the fund was asked to provide an estimate of your benefits. The Appointed Person found that he had no power to order redress in cases of maladministration and therefore could not investigate such claims. He considered whether the legislative requirements governing the transfer of pension rights had been correctly followed. He found that they had, that the service record had been amended and that any benefits that become payable under the LGPS will be calculated in accordance with the Regulations. He determined that he could not uphold your appeal.
3) In your appeal to the Secretary of State you also maintained that you were given a commitment that your transferred in service would count at 10 years and 107 days for the purposes of determining entitlement to benefits, but that under the 85 year rule this service does not count.
4) The questions for decision: The questions for decision are whether:
a) the incorrect recording of your transferred in service which resulted in the Annual Benefits Statement showing a higher level of benefits than allowed by the LGPS regulations was as a result of maladministration by the fund; and
b) your transferred-in service should count towards the 85 year rule.
5) The Secretary of State’s decision: The Secretary of State has taken into account the appropriate regulations. He finds that:
a) the fund acknowledge that an error occurred when the details of the amount of transfer credit were entered into their computer record in 1981 and that this error was not picked up until they were asked to provide you with an estimate of benefits. The Secretary of State confirms that the fund are required by the rules governing the LGPS to correct this error so that your benefits are calculated correctly. Like the Appointed Person, he 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; and
b) that his powers under regulations 102 and 103 of the 1997 regulations are to reconsider the original disagreement referred to the Appointed Person under regulation 100. On the evidence available the Secretary of State finds that as this part of your dispute was not referred to the Appointed Person he cannot consider the matter. You may wish therefore to refer this part of your dispute to the Appointed Person for him to consider. However, the 85 year rule was first introduced by the 1997 regulations. You may, therefore, in the first instance wish to discuss further with the fund’s Pension Manager whether this affects you in the way you consider.
6) This completes the second stage of the internal dispute resolution procedure. As you are aware, you are now entitled to refer the matter to the Pensions Ombudsman. 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 to him in accordance with the Pension Scheme Act 1993.
7) I am required to draw your attention to the role of the Pensions Advisory Service (OPAS) who are 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).