Internal Dispute Resolution Procedure (IDRP)
The Trustees (or scheme administrator for public sector schemes) of most occupational pension schemes must have in place a formal complaint procedure, known as the Internal Dispute Resolution Procedure (IDRP). The IDRP gives “prescribed persons" the opportunity to formalise their complaints about the Trustees and the administration of the scheme, their membership and their retirement benefits.
"Prescribed persons" are:
- members (i.e. active, deferred and pensioner members);
- surviving spouses and dependants of deceased members;
- employees eligible to become members at the employer's consent or otherwise;
- employees serving a waiting period;
- people who ceased to be in any of the above categories; and
- people claiming to be in one of the above categories.
The Trustees can put a time limit on a ‘prescribed person’ using the IDRP. This can be any reasonable period. However, for those in category 5 above, the time limit is six months from the date they ceased to be a member or a beneficiary.
The Trustees should acknowledge receipt of your IDRP application. At the same time, they should advise you that The Pensions Advisory Service is available to assist members and beneficiaries of the scheme in connection with any difficulties.
The Trustees can choose whether to have a one- or two-stage process.
One-stage process
The complaint must be considered by the Trustees. They must issue a formal response within a reasonable time period, defined by the Pensions Regulator as 4 months from the date of receiving the application. The complainant must be notified of the Trustees’ decision within 15 working days of the decision being made.
The Trustees must advise the complainant about the services of The Pensions Advisory Service (TPAS) and The Pensions Ombudsman in the formal response.
Two-stage process
A ‘specified person’ is appointed by the Trustees to consider the complaint at the first stage. The ‘specified person’ is usually the Pensions Manager or Secretary to the Trustees but can be anyone.
The ‘specified person’ must issue a formal response within a reasonable time period, defined by the Pensions Regulator as 4 months from the date of receiving the application. The complainant must be notified of the Trustees’ decision within 15 working days of the decision being made.
The ‘specified person’ must advise the complainant about how to invoke the second stage of the IDRP and also about the services of The Pensions Advisory Service (TPAS) and The Pensions Ombudsman and in the formal response.
If the complainant is not happy with the specified person’s decision, he can invoke the second stage of the IDRP. The Trustees will define the time limit for this. It is usually 6 months from the date of receiving the specified person’s decision.
The second stage is dealt with by the Trustees. Again, the Trustees must issue a formal response within a reasonable time period, defined by the Pensions Regulator as 4 months from the date of receiving the application. The complainant must be notified of the Trustees’ decision within 15 working days of the decision being made.
You may contact us for advice at any stage during the procedure. However, the Pensions Ombudsman cannot consider a complaint against the Trustees until the IDRP has been exhausted.
The IDRP does not apply if:
- the scheme is exempt from the requirements (i.e. there are less than two members in the scheme or all members are trustees);
- you are not a prescribed person (as defined above);
- your dispute is not with the Trustees;
- your dispute is the subject of proceedings that have already started in any court or tribunal; or
- a notice of appeal has been issued by you under regulation H2 of the Firemen's Pension Scheme Order 1992 or regulation H2 of the Police Pensions Regulations 1987.
- What is the IDRP?
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Since 1997, the Pensions Act 1995 has required occupational pension scheme Trustees and scheme authorities to make and implement arrangements for resolving disputes between themselves and 'prescribed persons' (as defined above).
- Who can use it?
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The IDRP is for complaints against the Trustees by ‘prescribed persons’. A prescribed person is:
- a member (active member, someone with deferred benefits, a pensioner);
- a surviving spouse and dependant of a deceased member;
- an employee eligible to become a member at the employer's consent or otherwise;
- an employee serving a waiting period;
- a person who ceased to be in any of the above categories within 6 months before applying for a decision; and
- a person claiming to be in one of the above categories.
- What do you need to do?
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You can obtain a copy of the IDRP from your scheme administrator or the Trustees. The procedure will tell you who you need to write to. You might be required to complete a form or to submit your complaint in a specified format.
You can invoke the IDRP yourself or, if you would prefer, act through a nominated representative (e.g. a friend or a union official). Personal representatives may act on behalf of a complainant who dies. A family member or other suitable person can act for a child or other person incapable of acting for himself. - What is involved?
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The IDRP can be a one- or two- stage process.
Under each stage, you will be required to submit a formal written complaint to the appropriate person (either a specified person or the Trustees). You should receive a decision on your case within a reasonable period, normally no more than four months.
You will be given instructions on what to do next. If it is a two-stage process, you will be given a time limit on invoking the second stage. You will also be advised about the services of TPAS and the Pensions Ombudsman.
- Can IDRP be used for all pension complaints?
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No, the IDRP does not apply if:
- the scheme is exempt from the requirements (i.e. there are less than two members in the scheme or all members are trustees);
- you are not a prescribed person (as defined above);
- your dispute is not with the Trustees;
- your dispute is the subject of proceedings that have already started in any court or tribunal; or
- a notice of appeal has been issued by you under regulation H2 of the Firemen's Pension Scheme Order 1992 or regulation H2 of the Police Pensions Regulations 1987.
- How does The Pensions Advisory Service (TPAS) fit into the process?
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You may contact the Pensions Advisory Service for advice at any stage during the procedure. Our only requirement is that you have raised your dispute in writing with the Trustees before writing to us. Our adviser will assist you through and, if necessary, beyond the process. Ultimately you will have the right to refer the matter to the Pensions Ombudsman.
Q & As
