New dispute rules 'unfair to members'

The Pensions Advisory Service (TPAS) warns that new regulations governing how trustees deal with internal dispute resolution (IDR) could be unfair to members.

Revised Department for Work and Pensions (DWP) regulations will see the current two stage procedure - which has strict time limits for actions and decisions - replaced with the option of taking a more flexible one-stage process.

Under the new rules members must be told about TPAS but this could happen after their complaint has been heard if the one stage approach is taken by trustees.

TPAS chief executive Malcolm McLean wants the regulations rewritten to ensure TPAS is mentioned before the complaint is formally addressed by the scheme.

He said: "We are firmly of the view that there is a case for imposing a statutory obligation on schemes to tell IDR applicants about TPAS and there is a simple way to do it - by requiring schemes to acknowledge the complaint and use that as vehicle for advising about us and our role.

"To do otherwise would create an un-level playing field where applicants in those schemes who are keeping the two-stage approach will be informed about us before the action is complete and those in the single stage cases only after final decisions have been taken and attitudes have probably become entrenched."

Mr McLean added: "We would suggest it is good practice for all written complaints to be acknowledged. At the issue of the acknowledgement the complainant should be made aware of the service TPAS provides."