Local Government Pension Scheme Appeal Determination By The Secretary of State

Our Ref: LGR85/18/ZG

July 1998

LOCAL GOVERNMENT PENSION SCHEME APPEAL

SUPERANNUATION ACT 1972

LOCAL GOVERNMENT SUPERANNUATION REGULATIONS 1986 (“the 1986 regulations”)

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1995 (“the 1995 regulations”)

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (“the 1997 regulations”)

1. I refer to your letters of 16 June and 13 July 1998 in which you appeal (under regulation 102 of the 1997 regulations) against the decision of Mr XXX, the Appointed Person. The Appointed Person had regard to the 1997 regulations and noted that an application must be made before the end of the period of six months beginning with the relevant date or such further period as the appropriate appointed person considers reasonable. He concluded that the relevant date was the date of the estimate provided by XXX Council (10 June 1991). He determined that your complaint (disagreement) was made nearly seven years later and over two years since your retirement and in view of the considerable time that has elapsed he did not consider that it would be reasonable to grant an extension of time to enable him to determine your complaint.

2. The question you have asked the Secretary of State to consider is why you received a lump sum payment of £11,457.51 and not the amount of £14,390.22 shown on the estimate.

3. The Secretary of State has considered all the evidence and representations contained in your letters of 16 June and 13 July 1998.

4. The Secretary of State has first considered when the disagreement occurred. He notes that the estimate provided by the council to XXX of 10 June 1991 showed the lump sum retiring allowance as £10,369.48, but this referred to the payment of pension benefits from 30 June 1991. He further notes that there is a document from XXX Council headed “ESTIMATED IMMEDIATE RETIREMENT BENEFITS ASSUMING THAT” which showed the lump sum retiring allowance as £14,390.22 and that this has the date of 25/5/91 handwritten on the top. The Secretary of State notes the view of the Appointed Person that the relevant date is 10 June 1991 (regulation 100 (8) and (10)). However, the Secretary of States notes that your benefits did not become payable until you retired in December 1995 and takes the view that this may have been the date at which you became aware that the actual amount of the lump sum would be less than quoted in the document dated 25/5/91. He further notes that you did not refer the matter to the Secretary of State at that time or to the Appointed Person to consider for a period of more than two years. Nevertheless in the circumstances the Secretary of State agrees to consider the matter.

5.The Secretary of State notes your contention that as part of your divorce settlement the court ordered you to pay £7,000 to your former wife by 2 January 1996 and that this amount had been based on an estimate showing your lump sum retiring allowance as £14,390.22. He notes that you state that the amount cannot be varied. There are currently no provisions in the local government pension scheme regulations for retirement benefits to be shared on divorce (limited earmarking and attachment provisions were later introduced in the Pensions Act 1995). This was a decision taken by the court and not a matter for the Secretary of State.

6. Secretary of State’s decision: The Secretary of State having taken into account the appropriate regulations finds that for the purposes of both the 1986 regulations, which were in force at the time of the estimate dated 25/5/91, and the 1995 regulations, which were in force when you retired, 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 whether the appropriate regulations have been correctly applied the accuracy of an estimate is not a matter he can reasonably consider and determines accordingly.

7. 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.

8. 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).

9. 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).