Not so easy pensions administration

For an organisation set up in 1991, it is surprising that questions still arise about the status and powers of the Pensions Ombudsman. But a year ago, in November 2023, this was something that the Court of Appeal had to decide.

A dispute had arisen when trustees sought to recoup a benefit which had been overpaid, by reducing future instalments of the member’s pension. The case came before the Pensions Ombudsman who duly made a Determination.

The appeal was not related to the trustees’ course of action, which was authorised under provisions of the Pensions Act 1995, but rather the formalities to be observed in arriving at a binding decision so that the set off could be exercised. Was the Ombudsman’s decision sufficient, or was it necessary to institute proceedings in order to obtain a County Court order or the equivalent in Scotland? The Court concluded that further proceedings were needed, holding that the Pensions Ombudsman was not a ‘competent court’ for these purposes.

Encouragingly, it was announced in the King’s Speech in July that the planned Pension Scheme Bill will reverse the decision, so that schemes can recover money in recoupment cases after an Ombudsman Determination without the need for a Court order.

The archives of the Pensions Archive Trust reveal much like this about the painstaking work of pensions administration that goes on in making sure that the right benefits go to the right person.

Pensions Archive Trust Director, Jane Marshall

https://pensionsarchive-org-uk.stackstaging.com/our-collections/

This article was first published in the November 2024 edition of Pensions Age magazine.