Internal Dispute Resolution Procedure (IDRP)
The Pensions Act 1995 (as amended by the Pensions Act 2004) requires occupational pension scheme trustees and scheme authorities to make and implement arrangements for resolving disputes between themselves and "prescribed persons".
You can use the IDRP only if you are a "prescribed person". The following individuals are "prescribed persons":
- members (active members, those with deferred benefits, and pensioners);
- 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 within 6 months before applying for a decision; and
- people claiming to be in one of the above categories.
You may correspond with the trustees or scheme authorities yourself under the IDRP or you may act through a nominated representative (e.g. friend, union official, our adviser). 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 themselves.
The IDRP will depend on the process put in place by the trustees or scheme authorities. The trustees or scheme authorities should provide you with details of the process, including how you can apply for it.
You may contact us for advice at any stage during the procedure. Our only requirement is that you have raised your dispute in writing with the trustees or scheme authorities before writing to us. Your 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.
The IDRP does not apply if:
- the scheme is exempt from the requirements (only where you are the only member of the scheme or where all the members are trustees);
- you are not a prescribed person (see 3.4.3);
- your dispute is not with the trustees or scheme authorities;
- 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 it?
-
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' (see 'Who can use it?').
- Who can use it?
-
You have the right to have a complaint considered under the formal IDRP if you are:
- 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?
-
You need to apply to the trustees or scheme authorities to have your complaint considered under the IDRP. You might be required to complete a form or to submit your complaint in a specified format. You may correspond with the trustees or scheme authorities yourself under the IDRP or you may act through a nominated representative (e.g. friend, union official, TPAS adviser). 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 him/herself.
- What is involved?
-
The IDRP is currently a two-stage process. The trustees or scheme authorities should have nominated a person to deal with the first stage - perhaps the Pensions Manager or scheme administrator. You should receive a decision on your case within two months of the date of your application.
Where this has not proved possible, you should receive an explanation for the delay and when a decision may be expected. If you remain dissatisfied, you may apply to the trustees or scheme authorities to review your case. You must make this second application within six months of the date of the first stage decision. Again, the trustees or scheme authorities have two months to advise you of their decision.
At both stages, the trustees or scheme authorities should advise you of how you can appeal if you are not satisfied with the decision.
- Can IDRP be used for all pension complaints?
-
No, the IDRP does not apply if:
- the scheme is exempt from the requirements (only where you are the only member of the scheme or where all the members are trustees);
- you are not a "prescribed person";
- your dispute is not with the trustees or scheme authorities;
- your dispute is the subject of proceedings that have been begun 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 fit into the process?
-
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 or scheme authorities before writing to us. Your 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.
If your dispute is with your employer it might relate to your job rather than the provisions of the pension scheme. If the problem relates to your terms and conditions of employment rather than your pension scheme entitlements it is unlikely the Pensions Advisory Service will be able to help you. Often it is unclear into which category a dispute falls. If you are unsure you should write to us for advice.
For advice and assistance on employment disputes you should contact an appropriate legal expert, though this may be expensive. Alternatively, if you are a member of a trade union, your union representative may be able to help you. You may wish initially to contact your local Citizens Advice Bureau. It may be able to either offer free legal advice or put you in touch with other organisations providing either free or subsidised advice.
Where the Pensions Advisory Service does get involved, we will take matters up directly with the employer. Ultimately you will have the right to refer the matter to the Pensions Ombudsman.
Q & As
