844 INDEX
LOCAL GOVERNMENT PENSION SCHEME 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 dated 7 June 2000 in which you appeal (under regulation 102 of the 1997 regulations), against the decision of Mr XXX, the Appointed Person for XXX (the authority), in relation to your local government pension scheme (LGPS) dispute with XXX Limited (the company).
2. The Appointed Person found that you did not satisfy the requirements of the LGPS regulations for the early payment of your retirement benefits on the grounds of ill-health.
3. The question for decision: The question for decision by the Secretary of State is whether since ceasing your employment with the company on 1 January 1997 you have become incapable of discharging efficiently the duties of that employment because of permanent ill-health or infirmity of mind or body, and so qualify for the immediate payment of your LGPS benefits.
4. Secretary of State’s decision: The Secretary of State has considered all the representations and evidence, and has taken into account the appropriate regulations. He finds that there appear to be different medical opinions and these have not been resolved or explained to his satisfaction. He has therefore decided to refer the matter back to the company for them to refer all the evidence to a separate, independent registered medical practitioner who is qualified in Occupational Health and who has not been involved with the previous decisions.
5. The Secretary of State’s decision replaces that made by the appointed person.
6. The Secretary of State’s reasons and the regulations which he considers apply in this case are set out in the annex to this letter, which forms an integral part of the decision. He is acting judicially and has no power to modify the way the regulations apply to the facts of the case. Having made his decision he has no power to alter it and his officials cannot discuss the case further. The decision is binding and can only be overturned by a judgement of the High Court or the Pensions Ombudsman.
7. 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 020 7233 8080).
8. The Pensions Ombudsman may investigate and determine any complaint of maladministration or any dispute of fact or law in relation to the local government pension scheme made or referred in accordance with the Pension Schemes Act 1993. His address is 11 Belgrave Road, London, SW1V 1RB (telephone 020 7834 9144).
1. The following evidence has been received and taken into account:
a) from you: letter dated 7 June 2000 (with enclosure) and undated letter received by the Department on 24 July 2000 (with enclosure); and
b) from the Appointed Person: documents considered by him (list enclosed in the Department’s letter dated 11 July 2000).
THE SECRETARY OF STATE’S POWERS
2. 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 LGPS, which effectively means whether the statutory provisions governing the LGPS have been correctly applied in the circumstances. The Secretary of State has no powers to direct the company to act outside the provisions of the regulations. The disagreement you referred to the Appointed Person was whether the company should have granted you the early payment of your pension benefits on the grounds of ill-health.
REGULATIONS CONSIDERED AND REASONS FOR DECISION
3. From the evidence submitted the following points have been noted:
a) your date of birth is 18 May 1949;
b) you were employed by the company, as an Assistant Traffic Supervisor;
c) you were a member of the LGPS;
d) on 1 August 1995 you were involved in an accident at work;
e) your employment was terminated on 1 January 1997 on the grounds of redundancy;
f) the company refused to grant you the early payment of your pension benefits on ill-health grounds in August 1997 based upon the recommendations of the company’s medical adviser;
g) the Appointed Person upheld the company’s decision following your appeal dated 15 May 1998;
h) you appealed to the Secretary of State, who, in his letter dated 1 September 1998, confirmed the Appointed Person’s decision;
i) you submitted further medical evidence to the company on 17 November 1998 to support your claim for early payment of pension on ill-health grounds; and
j) the company’s medical adviser Dr XXX considered the evidence but concluded on 21 June 1999 that you were still not entitled to the payment of your pension benefits.
4. You maintain that you are unable to perform the duties of your former employment due to permanent ill-health. You query why the authority sought a further medical report when an independent medical report, requested by the authority, had already been received. You also state that you have had your PSV licence revoked, which you required to perform your former duties. The Secretary of State notes you included a copy of a letter from your General Practitioner, Dr XXX, dated 17 January 2000 with your appeal dated 7 June 2000. He notes Dr XXX stated with regard to your medical condition “It looks unlikely that there is going to be a significant improvement based on currently available information." He also notes you included a copy of a reference from Mr XXX dated 2 January 2000 with your letter received by the Department on 24 July 2000.
5. The Appointed Person determined that “Having regard to the medical evidence, and the lack of medical diagnosis to explain your various symptoms. My decision is that I am not satisfied that you are permanently incapable of discharging efficiently the duties of your former employment as a Traffic Supervisor, and therefore that you are not entitled to payment of your pension benefits.”
6. The Secretary of State in reaching his decision has had regard to the regulations, which, in his view apply. He notes that the Appointed Person has erroneously made reference to regulation 27 of the 1997 regulations, which deals with members who have ceased employment since 1 April 1998 on ill-health grounds. You ceased employment on 1 January 1997 on grounds of redundancy. Members such as yourself who had ceased contributing before 1 April 1998 are subject to the provisions of the 1995 regulations in relation to their benefits. Since you ceased employment, the early payment of your pension benefits on ill-health grounds was considered by the company, the Appointed Person and the Secretary of State, who decided on 1 September 1998 on the evidence available that you did not qualify. You have now presented new evidence and it is this evidence which has to be considered under regulation D11 of the Local Government Pension Scheme Regulations 1995. Regulation D11 provides for a member’s retirement benefits to be paid from the date on which he becomes incapable, by reason of permanent ill-health or infirmity of mind or body, of discharging efficiently the duties of the employment he has ceased to hold. The Secretary of State takes the view that for an incapacity to be permanent it would have to be unlikely to improve sufficiently for you to perform the duties of your former employment efficiently before your normal retirement age when LGPS benefits must, in any case, be paid.
7. In considering the new evidence you submitted on 17 November 1998, the company were required to comply with the provisions regarding first instance decisions in regulation 97 of the 1997 regulations (this regulation is one of a number of common provisions which apply even where the member had ceased employment before 1 April 1998 and whose benefit entitlements fall under earlier regulations). Regulation 97 had the effect of requiring the company, before making a decision as to whether you were entitled to early payment of your benefits on ill-health grounds, to obtain a certificate from an independent registered medical practitioner approved by the administering authority, as to whether in his opinion you were permanently incapable of efficiently discharging your former duties because of ill-health.
8. The Secretary of State notes that you state your PSV licence has been revoked by the DVLA. He notes that there is no medical evidence available to him to show whether you will not be able to successfully re-apply for a PSV licence in the future.
9. The Secretary of State has considered all the medical evidence submitted to him comprising: letters from Dr XXX, the company’s medical adviser, dated 18 December 1998, 22 April 1999 and 21 June 1999; Dr XXX’s medical report, MRI of head and cervical spine, dated 4 August 1998; Consultant Neurologist Dr XXX’s medical report dated 3 November 1998; Consultant Surgeon Mr XXX’s medical report dated 19 January 2000; and Consultant Occupational Physician Dr XXX’s medical report dated 30 March 2000.
10. The Secretary of State has not been provided with a copy of the company’s decision not to award you early payment of your benefits following your application on 17 November 1998. It would appear that their decision was based upon the opinion of Dr XXX in his letter dated 21 June 1999. The Secretary of State notes that Dr XXX’s letter is not expressed in the terms required by regulation 97(9), although his earlier letter of 22 April 1999 did refer to “permanent incapacity”. The Secretary of State also notes that the evidence suggests (although it is not entirely clear) that Dr XXX may be employed by the company on their payroll. He cannot be satisfied that Dr XXX can properly be considered an independent registered medical practitioner within the meaning of regulation 97 of the 1997 regulations.
11. The Secretary of State notes there is conflicting medical opinion with regard to the permanence of your condition. He notes that Appointed Person referred the matter to an independent medical adviser, Mr XXX, who stated that “…[you have] a serious medical illness which up to this time has not been diagnosed. [You have] seen first class specialists in the fields of rheumatology, neurology and psychiatry but continues to have consistent and increasingly severe symptoms. …there has been absolutely no sign of any improvement in [your] condition. I am in no doubt that [you are] indeed permanently incapacitated….” He also notes the Appointed Person subsequently referred the matter to a further independent medical adviser, Dr XXX, who stated that “It is my opinion that [you are] elaborating [your] symptoms and [your] illness is probably fictitious. I do not believe that [you have] permanent incapacity as defined in the rules of the Local Government Pension Scheme.” He also notes that no other clear opinion on the permanence of your incapacity is specifically stated in the evidence he has considered.
12. In the Secretary of State’s view there appears to be a difference of medical opinion between the two independent medical advisers, Mr XXX and Dr XXX. He notes Mr XXX considers you have a serious medical illness and that you are permanently incapacitated, however, it is noted that he has not been able to offer a clinical diagnosis. Dr XXX however considers you are elaborating your symptoms and your illness is probably fictitious. The reason for the difference of opinion has not been made clear to the Secretary of State’s satisfaction. In these circumstances he considers the medical evidence should be reviewed, by a separate independent registered medical practitioner qualified in occupational health medicine who has not been involved in this or the previous decision. He has decided to refer the question back to the company for them to put this in hand.