Posted by Colin Blanks on 03 October 2000 at 21:25:13:
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A guide for pension scheme trustees
Following the procedures - continued
Complaints from members
The trustees of most pension schemes are required by law to have in place formal arrangements for resolving complaints. This is known as the internal disputes resolution procedure.
This procedure covers disputes between the trustees or scheme managers and the members (including pensioners and deferred members), prospective members, dependants entitled to a benefit, and individuals who were recently, (or claim to be) in one of these categories.
The procedure involves two stages and sets out specific timescales for providing complainants with written decisions.
At the first stage, complaints are dealt with by a person appointed by the trustees to implement the complaints procedure, such as the Personnel Manager or Pensions Manager. If the complainant is not satisfied with the response they receive, they have a right to appeal to the trustees.
At the second stage, the trustees have a duty to consider the complainant's case fairly, and not simply rubber-stamp the decision reached in the first stage. They should therefore be careful to ensure that they look at the complaint with an open mind.
At both the first and second stages a written decision must be given to the complainant within two months. The trustees' written decision must contain a statement about the existence of the Pensions Advisory Service and the Pensions Ombudsman.
If the complainant is not happy with your decision, or if your disputes resolution procedure is not operated properly, then they may take the matter further through the Pensions Advisory Service or the Pensions Ombudsman. OPAS, the Pensions Advisory Service, is an independent voluntary organisation which is able to help members of the public who have problems with their pensions (except state pensions). If you are unable to resolve a complaint, or the person complaining is not satisfied with your response, they can take the problem to OPAS. OPAS will provide an independent explanation of the position or assistance to the complainant if they feel your decision could be flawed.
OPAS may in turn refer the matter to the Pensions Ombudsman. The Pensions Ombudsman is an impartial adjudicator who acts independently in deciding complaints or disputes between:
members or beneficiaries and the trustees, employer or administrator;
trustees and employers (in relation to the same scheme); and
two sets of trustees of different schemes.
The Pensions Ombudsman's decisions are legally enforceable. If you obtain a request for information from OPAS or the Pensions Ombudsman, you should respond helpfully to their request and avoid unnecessary delays. Both bodies act independently, and are only concerned with resolving the problem.
Finally, anyone involved with the scheme can contact OPRA if they think that the trustees are not following procedures properly.