Dear Sir

 

LOCAL GOVERNMENT PENSION SCHEME APPEAL

 

SUPERANNUATION ACT 1972

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

 

I refer to your undated letter (received in the Department on 27 March 2000) 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 for XXX Council, in relation to your local government pension scheme (LGPS) dispute with the XXX Pension Fund.

 

The Appointed Person explained that “ Regulation 100 requires an appeal to be made within six months of the relevant date, or such longer period as the appointed person considers reasonable”.  He found that “… you were first notified of the amount of pension payable from your AVC Fund with Equitable Life on 15 September 1995, and were sent details of the Internal Dispute Resolution Procedure by the XXX Pension Fund on 7 July 1997 I do not feel able to entertain your appeal.”.

 

The Secretary of State notes that you explain the reason why you have taken so long to bring this to the attention of the pension scheme is that you have been suffering from illness, have been in hospital and “only just started to get back on my feet again”.  You also explain that you are deaf and suffer from tinnitus, have started work again (part-time) and find it difficult to manage on your pension and AVC.

 

At the time your AVC benefits became payable in 1995 the regulations governing the LGPS allowed a member or his representative to refer a disagreement concerning the LGPS direct to the Secretary of State.   It is noted that you did not submit such an appeal at that time.  With effect from 6 April 1997 the internal dispute resolution procedure was adopted.  This allowed a disagreement about the LGPS to be referred in the first instance to the Appointed Person and then the Secretary of State.  This could be done either by the member or a representative acting for him.  It is noted that details of the new appeal procedure arrangements were sent to you by the xxx Pension Fund on 7 July 1997.

 

Your dispute is about whether it is fair that it will take approximately 25 years to receive your original investment.  You explain that you believed “AVC were to top up my occupational pension not a separate insurance scheme … now receive £1.25 pw … which will take me 25 years approx to receive my original investment this does not seem like a fair return on my investment”.  It is noted that you do not dispute that the amount being paid is correct.

 

The Secretary of State takes the view that your disagreement arose in September 1995, when you were first notified of the amount of pension payable from your AVC fund.  He notes that, where a person considers he has a claim or grievance, the law requires him to pursue it with reasonable diligence.  The Secretary of State has given very careful consideration to the reasons why you have only recently submitted your disagreement to the Appointed Person.  He concludes that although your illness may have prevented you from pursuing this matter you could have asked a representative to act for you. The Secretary of State considers that you have not pursued your complaint with reasonable diligence.  Furthermore, the Secretary of State’s power on appeal is to ensure that a beneficiary of the LGPS is awarded the correct entitlement under the appropriate regulations.  He has no power on appeal to consider whether the LGPS regulations or the benefits payable are unfair.  He notes that your complaint is not about whether the regulations have been correctly applied but about whether the amount of your benefit is fair.  The Secretary of State concludes in all the circumstances that he cannot determine your appeal.

 

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 0207 233 8080).

 

The Pensions Ombudsman may investigate and determine any allegation of maladministration or any dispute of fact or law in relation to the LGPS made or referred in accordance with the Pension Schemes Act 1993.  His address is 11 Belgrave Road, London, SW1V 1RB (telephone 0207 834 9144).