Sackers predicts a significant increase in complaints to the Pensions Ombudsman and sets out practical steps that trustees can take to minimise the impact on their own schemes.
Trustees were told at a webinar this week that having a solid grasp of the guidelines the Pensions Ombudsman uses to evaluate complaints will help them lessen the impact on their pension plans.
The Pensions Ombudsman has had a busy year in 2023, with its complaints processes returning to normal following a cyber security breach, it was noted. This incident has influenced the amount of time it takes to handle complaints and the rate at which they are resolved.
Sackers senior counsel Arshad Khan says: “2023 has been quite a year for the Pensions Ombudsman. Their investigation processes are returning to normal now, following the cyber security incident, but timescales for dealing with complaints have definitely been affected. Based on information publicly available, determinations for the first nine months of the year to September appear to show that a large majority of complaints have not been upheld (53.9 per cent ) or only partially upheld (14.8 per cent ) which is good news for trustees.”
Khan added: “Transfers, misquotes and death benefit cases are perennial knotty areas when it comes to complaints. We would therefore encourage trustees to pay close attention to these areas in particular. For transfers, trustees should check carefully when the transfer occurred, whether the member was warned of the risks involved and sent a Scorpion leaflet and whether the transfer was statutory or non-statutory – these factors can all have a big impact on the validity of a complaint.
“For misquotes, trustees are encouraged to refer in the first instance to the helpful factsheet for members issued by the Pensions Ombudsman in July 2023 which sets out the key principles. And for death benefit cases, remember that the Ombudsman is not there to decide who should get a benefit but rather to ensure that trustees have followed the right processes.
“Tricky situations will inevitably arise but if trustees have a good understanding of the underlying principles which the Pensions Ombudsman will use when assessing any complaint, they will be much better placed to minimise the impact on their scheme.”
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