597            INDEX

 

 

Our Ref: LGR85/18/H

05 August 1999

LOCAL GOVERNMENT PENSION APPEAL

 

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

 

1.      I refer to your undated letter (received on 4 August 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.  Mr XXX has provided a copy of his decision letter of 6 July 1999.

 

2.      The Secretary of State notes that the Appointed Person, in his letter, stated that “ The XXX Fund have acknowledged that they were at fault in the provision of incorrect information in those estimates but maintain that the Local Government Pension Scheme do not allow you to convert part of your pension into an additional lump sum payment.”.  He confirmed that you were not eligible to convert some of your pension into additional lump sum and that the Regulation did not give him any discretion in this matter.  He found the decision of the XXX Fund (the fund) to be correct.

 

3.      You explained in your letter that following figures provided by the fund you elected to accept the offer of a larger lump sum and smaller pension.  However four days before retiring you found out that this offer should not have been given to you. You explain that you have found the whole thing most distressing as it was not your fault.  With your letter you enclosed a copy of a letter (with enclosures) from Mr XXX, who supports your appeal.

 

4.      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 (LGPS) have been correctly applied.  Provision is made in the 1997 regulations for a member to elect, in certain circumstances, for an additional lump sum to be paid when your LGPS benefits became payable.  Where an additional lump sum is paid the member’s pension is reduced (regulation 59).  One of the circumstances is that he became a member before 17 March 1987 and has continued to be a member (Schedule 4, paragraph 1 (1)).  It is not disputed that you became a member on 1 June 1987.  The Secretary of State therefore finds that you could not elect to receive an additional lump sum payment and reduced pension when your employment ceased and your LGPS benefits became payable.

 

5.      The question for decision: The question for decision by the Secretary of State is whether you can be paid an additional lump sum and reduced pension as you were originally informed.

 

6.      The Secretary of State’s decision: The Secretary of State has considered your complaint.  He notes that the fund acknowledge they were at fault in providing you with incorrect information which lead you to believe you would receive an additional lump sum when your pension was paid.  However, the Secretary of State’s powers are limited to whether the rules governing the LGPS have been correctly applied.  He finds that there are no provisions in the rules governing the LGPS which would allow the fund to pay you an additional lump sum and reduced pension.  The Secretary of State, like the Appointed Person, cannot direct the fund to act outside the provisions of the regulations even where it is acknowledged that they have provided incorrect information.  Nor has he any power to order redress or direct compensation to be paid even where maladministration is shown to have occurred.  His decision confirms that made by the Appointed Person.

 

7.      This completes the second stage of the internal disputes resolution procedure.  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.

 

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 LGPS, 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).

 

9.      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).

 

10.   A copy of this letter has been sent to the Appointed Person and the fund.