LOCAL GOVERNMENT PENSION APPEAL

 

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 21 July 1999 in which you appeal (under regulation 102 of the 1997 regulations) to the Secretary of State for the Environment, Transport and the Regions following the decision by Mr XXX, the Appointed Person.

 

2.      You asked the Appointed Person to decide whether the XXX Council (the council) are guilty of maladministration in failing to advise you earlier that you could not be paid a refund of your contributions as you had completed two years’ membership of the LGPS. You also asked the Appointed Person to confirm that no refund was payable, although you accepted that this was legally correct.

 

3.        The Secretary of State’s powers under regulations 102 and 103 are limited, like the Appointed Person’s, to whether the statutory rules governing the local government pension scheme have been correctly applied.  You have confirmed that you accept that you cannot be paid a refund. The Secretary of State notes that the disagreement you ask him to consider is about the advice given to you by the council. You explain that you were first informed that you could have a refund of contributions at any time after your contract of employment had ended as it was for less than 2 years.  When your contract ended you were told that this was incorrect as your contract counted as two years service (membership) and therefore you are not entitled to a refund of contributions. At the time you ceased employment with the council the 1995 regulations were in force. Regulation C21 provides for a refund of contributions where a member has less than two years membership and the member meets specific criteria.  From the information available to the Secretary of State he accepts that you are not entitled to a refund under this regulation.  (It is noted that the Appointed Person referred to regulation C12 in his letter.  It is considered that this is probably a typing error and should have said regulation C21.)

 

4.      The question for decision: The question you asked the Secretary of State to decide is whether the council gave you wrong advice and are therefore guilty of maladministration.

 

5.      The Secretary of State’s decision: The Secretary of State having considered your complaint finds that they are no provisions in the rules governing the LGPS requiring the council to provide advice on issues relating to the LGPS although there are provisions concerning the provision of information.  However, in cases where a member of the LGPS alleges maladministration due to the provision of wrong advice or information the Secretary of State has no power to order redress or to award compensation.  The Secretary of State cannot direct the council to act outside the provisions of the regulations by ordering a refund of your contributions nor can be direct them to pay compensation.

 

6.      This completes the second stage of the internal dispute resolution procedure.  Having made his decision, the Secretary of State has no power to alter it but you may refer the matter to the Pensions Ombudsman (or the High Court).  Because of this, the Secretary of State’s officials cannot discuss the case further.

 

7.      The Pensions Ombudsman may investigate and determine any complaint or dispute of fact or law in relation to the LGPS, including allegations of maladministration, made or referred in accordance with the Pension Schemes Act 1993. His address is 11 Belgrave Road, London, SW1V 1RB (telephone number 0171 834 9144).

 

8.      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.      A copy of this letter has been sent to the Appointed Person and the council.