Local Government Pension Scheme Appeal Determination By The Secretary of State

Our Ref: LGR85/18/Z

21 July 1998

LOCAL GOVERNMENT PENSION 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 6 July 1998 (which the Department received on 8 July but which was not passed to this section until 17 July) in which you appeal, on behalf of Mr XXX, against the decision of Mr XXX, the Appointed Person for XXX Council (the council). The Appointed Person found that the council had acted correctly in omitting the period of Mr XXX’ local government employment between 3 July 1961 and 31 July 1975 for which he received a refund of contributions, from the calculation of the benefits he was awarded under the 1995 regulations when he retired on 31 March 1998.

2. You consider the Appointed Person has failed to give due consideration to the claims of maladministration made by Mr XXX in that i) the council failed to provide him with accurate estimates as to his pension benefits over a 2 year period and ii) that he was induced to accept early retirement on the basis of the inaccurate information provided to him. You ask the Secretary of State to consider these issues.

3. The Secretary of State has considered all the evidence and representations contained in your letter. He notes Mr XXX’ contention that the estimates provided included in the calculation the period 3 July 1961 and 31 July 1975. He notes that Mr XXX did not question the exclusion of this period from the final calculation of his benefits, but asked the Appointed Person to consider whether the provision of inaccurate estimates, on which he based his decision to retire early from the council, amounts to maladministration by the council. The Secretary of State’s powers under regulation 102 of the 1997 regulations are limited to reconsidering the disagreement referred to the Appointed Person.

4. Secretary of State’s determination: The Secretary of State having taken into account the appropriate regulations finds that for the purposes of the 1995 regulations, which were in force at the time, there are no provisions requiring the council to provide estimates of pension benefits. As the Secretary of State’s powers of redress are limited to instances where the appropriate regulations have been incorrectly applied, the accuracy of an estimate or the reasons why it was provided are not matters he can reasonably consider, nor, for the same reasons, can he sensibly consider allegations of maladministration in the context of a pensions appeal. He determines accordingly.

5. Having made his determination the Secretary of State has no power to alter it but you may refer the matter to the Pensions Ombudsman or to the High Court. Because of this officials may not discuss the case further.

6. This completes the second stage of the IDRP. The Occupational Pensions Advisory Service (OPAS) is available to assist members and beneficiaries in connection with difficulties which they have failed to resolve. His address is 11 Belgrave Road, London, SW1V 1RB (telephone number 0171 233 8080).

7. The Pensions Ombudsman may investigate and determine any complaint or dispute of fact or law in relation to the local government pension scheme. His address is 11 Belgrave Road, London, SW1V 1RB (telephone number 0171 834 9144).