LOCAL GOVERNMENT PENSION APPEAL

 

APPEAL BY PAT LONGWORTH, NANCY HALLER, BRIDGET BROWN AND JANET KEABLE

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

 

1.      I refer to your letter of 9 August 1999 in which you appeal (under regulation 102 of the 1997 regulations) on behalf of XXX to the Secretary of State for the Environment, Transport and the Regions against the failure of Mr XXX, the Appointed Person, to issue his decision on the complaint referred to him in May 1999.  You had asked the Appointed Person to reconsider his decision of 14 January 1998; he failed to reach a decision as there was no new evidence.

 

2.      The issue XXX (the union) originally referred to the Appointed Person was whether the employer is entitled to go back on the representations that were made to employees, and what constitutes adequate compensation for the distress caused.  This was in connection with the provision of information about the making of additional payments in respect of previous part-time service.  The Appointed Person, in his letter of 14 January 1998, found that “ ... the XXX Council had no choice but to comply with the requirements of the 1995 regulations and the 1986 regulations as amended by the Local Government Superannuation (Amendment) Regulations 1990”.  He further found that he had no authority to enter into any discussion about maladministration or the award of any form of compensation.

 

3.      The Secretary of State’s powers under regulations 102 and 103 of the 1997 regulations are to reconsider the original disagreement referred to the Appointed Person under regulation 100.  This regulation refers to a matter relating to the local government pension scheme (LGPS), which effectively means whether the statutory rules governing the LGPS have been correctly applied.  The Secretary of State cannot direct the council to act outside the provisions of the regulations nor can he direct them to pay compensation.  It appears from the information available that you do not dispute that the regulations have been correctly applied. 

 

4.      The question for decision: The question for decision by the Secretary of State is whether XXX took decisions on the basis of wrong advice.

 

5.      Secretary of State’s decision: On the evidence available to the Secretary of State it would appear that the provisions in the 1986 regulations relating to the making of additional payments in respect of previous part-time service (regulation C7A) have been applied correctly.  With regard to your claim of maladministration causing injustice the Secretary of State accepts that prima facie there may be a case of maladministration potentially causing injustice or financial loss.  However he has no powers to order redress or require compensation to be paid in cases where maladministration is alleged even if it is proved to have taken place.

 

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 to the High Court.  Because of this the Secretary of State’s officials cannot discuss the case further.

 

7.       The Occupational 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 0171 233 8080).

 

8.      The Pensions Ombudsman may investigate and determine any allegation of maladministration or 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).