615            INDEX

 

 

LOCAL GOVERNMENT PENSION SCHEME APPEAL

 

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1995 (the 1995 regulations)

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

 

1.      I refer to your undated letter received in the Department on 7 September 1999 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, in relation to your local government pension scheme (LGPS) dispute with XXX Council (the council).  Mr XXX has provided us with a copy of his decision letter dated 8 August 1999 and background papers.

 

2.      Your dispute is about the delay in transferring your benefits from XXX to the LGPS which resulted in a loss of pension benefits.  You requested the Secretary of State to consider whether the delay was as a result of maladministration by the council. The Appointed Person upheld the council’s decision because the dispute involves maladministration and did not fall within the scope of the LGPS.

 

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 LGPS, which effectively means whether provisions governing the LGPS have been correctly applied.  The Secretary of State has no powers to direct a local authority to act outside the provisions of the regulations.  It appears from the regulations that you do not argue that the regulations have not been properly applied.

 

4.      The question for decision: The question for decision by the Secretary of State is whether the delay in transferring your benefits from XXX to the LGPS which resulted in a loss of pension benefits was as a result of maladministration by the council.

 

5.      Secretary of State’s decision: The Secretary of State has taken into account the appropriate regulations.  In 1996 when you agreed to the transfer value the 1995 regulations applied.  Regulation K13 provided for the council to accept a transfer value from a non-LGPS scheme.  It does not compel the council to accept a transfer nor does it provide any time limits to process a transfer.  On the 1 April 1998 the 1995 regulations were replaced by the 1997 regulations and similar provisions are proved for in regulation 121 of the 1997 regulations.  The Secretary of State therefore finds that the council were not required to arrange the transfer of your pension rights into the LGPS within the period for which its valuation was guaranteed.  Like the Appointed Person the Secretary of State cannot direct the council to act otherwise than in accordance with rules governing the LGPS.  The Secretary of State notes from the background papers provided by the Appointed Person that the council accept that there was a delay in completing the transfer of your pension benefits from XXX, however, he has no power to order redress or award compensation even where maladministration is proved.

 

6.      It is noted that in relation to rights relating to your XXX pension there may also be a question concerning misselling of a personal pension.  The LGPS regulations do provide some flexibility to provide restoration of rights where this is found to be the case, but this may be limited where there is a claim of maladministration, and is for the council to decide separately.

 

7.      This completes the second stage of the internal disputes resolution procedure.  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 complaint or dispute of fact or law in relation to the LGPS.  His address is 11 Belgrave Road, London, SW1V 1RB (telephone number 0171 834 9144).