The Pensions Advisory Service and The Pensions Ombudsman
The Pensions Advisory Service and the Pensions Ombudsman play very different roles in the resolution of problems, complaints and disputes concerning pension plans. The object of this note is to try and explain those differences.
- The Pensions Advisory Service
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The Pensions Advisory Service gets involved before the Pensions Ombudsman who is normally the final arbiter in the matter. The Pensions Advisory Service does not have statutory powers and can only effect a resolution through persuasion and conciliation. The Ombudsman on the other hand has similar powers to a court of law.
Our advisers, who are all volunteers and carry out this service free in their own time, are all pensions experts. Their first task is to gather as much information as possible from the complainant and all other parties involved. If the adviser, in the light of the information available, does not believe you have a sustainable case, he/she will tell you this, explain why they have reached this conclusion and return the file to Head Office for closing.
No opinion expressed by the Pensions Advisory Service is in any way legally binding and you still have the right to take your case to the Pensions Ombudsman, as long as it is within his jurisdiction.
If the adviser believes you have a case, however weak, he/she will assist you and the other parties to come to a resolution. Sometimes this may result in your getting everything you want but often it may involve a compromise and a negotiated settlement. If, at the end of our efforts, you are not prepared to accept the outcome, you are still free to take your case to the Pensions Ombudsman.
If, after investigating your case, the adviser believes a referral to the Pensions Ombudsman of your case may be beneficial, the file will be returned to Head Office who will carry out an independent review of the file and provide an expert second opinion. While this will usually confirm the views of the adviser, sometimes the Head Office view will be different. If the Head Office agrees that there is a case to be determined they will provide any assistance you need in presenting your complaint to the Pensions Ombudsman. - The Pensions Ombudsman
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Complaints to the Pensions Ombudsman must be presented on his official complaint form which the Pensions Advisory Service will provide if you do not already have a copy. If one of the respondents you cite is the scheme trustees, then the Ombudsman can only investigate after you have subjected your complaint to the scheme's internal dispute resolution process. This is a statutory requirement. The Pensions Advisory Service can give you guidance on how to fulfil this requirement.
Upon receipt of your form, the Ombudsman's office will request us to pass over your case file prior to their investigation. The Ombudsman will reach his own decision on your case based upon his interpretation of your legal rights. This decision will be totally independent of any conclusion reached by the Pensions Advisory Service on your case. Following his investigation, the Ombudsman will decide your complaint or dispute. His decision is final and binding on all the parties to the complaint or dispute. It can be enforced in the courts. His decision can only be changed by appealing to the appropriate court on a point of law.
You should write to the Pensions Ombudsman within 3 years of the act or omission that you are complaining about or disputing. If you did not know about the matter at the time, the 3 years run from the time you knew or ought to have known.
The Pensions Ombudsman may extend the time limit if the complaint is made outside the 3 year period, but only as long as he thinks that any further delay beyond 3 years is reasonable. In particular he will usually treat time spent using an internal dispute resolution procedure and/or being assisted by the Pensions Advisory Service as a good reason for delaying complaining to him. However, if there is a delay between the Pensions Advisory Service closing their file and you lodging a complaint with the Ombudsman, that time will count towards the 3 year limit.
