Pensions Ombudsman

Overview

  • The Pensions Ombudsman provides an independent and impartial service for resolving disputes and complaints about maladministration concerning workplace and personal pension schemes. This guide sets out steps of making a claim, the types of issues the Ombudsman can handle, and what to expect during the process.

Pensions Ombudsman role

  • The Pensions Ombudsman is a free and impartial organization that helps resolve complaints and disputes involving pension schemes. This includes both occupational pensions (provided by employers) and personal pensions.

  • The service handles cases such as:

    • Mismanagement of pension funds

    • Errors in benefit calculations

    • Unreasonable delays in payment

    • Failure to provide information

  • However, the Ombudsman does not handle:

    • State Pension disputes (handled by the Department for Work and Pensions)

    • General financial advice or investment performance issues

  • The Ombudsman can award compensation for financial loss or distress caused by the pension provider or require the provider to rectify any maladministration.

Eligibility to Bring A Complaint

  • You can make a complaint if you are:

    • A member of a pension scheme

    • A beneficiary of a pension scheme

    • Acting on behalf of a member or beneficiary (e.g., a legal representative)

  • Before approaching the Ombudsman, you must usually have tried to resolve the issue directly with the pension scheme through its Internal Dispute Resolution Procedure (IDRP).

Complaint Process

1: Exhaust Internal Dispute Resolution Procedure (IDRP)

  • Every pension scheme has an IDRP. This is a two-stage process:

    • Submit your complaint in writing to the scheme administrator.

    • If unresolved, escalate the complaint to the second stage (often reviewed by trustees or a senior manager).

2: Contact the Pensions Ombudsman

  • If the IDRP does not resolve your issue, you can submit your complaint to the Pensions Ombudsman.

    • You must submit your complaint within three years of the event in question or within three years of becoming aware of the issue.

    • You can contact the Ombudsman’s helpline for guidance before making a formal claim.

3: Submit a Complaint Form

  • Fill out the complaint form available on the Pensions Ombudsman’s website. Include:

    • A detailed explanation of the issue

    • Copies of relevant correspondence (e.g., emails, letters, IDRP decisions)

    • Any supporting evidence, such as statements or policies

What Happens After You Submit a Claim?

1:Initial Assessment

  • The Ombudsman will assess whether your claim falls within its remit. If it does not, they will guide you to other avenues, such as the Financial Ombudsman or the Money and Pensions Service.

2:Investigation

  • If accepted, the Ombudsman will investigate the complaint by:

    • Requesting additional information from you or the pension provider

    • Reviewing documents and evidence

    • Consulting with both parties to seek a resolution

3:Decision

  • The Ombudsman will issue a determination. This can either:

    • Uphold the complaint and require the pension scheme to take specific actions (e.g., pay compensation or correct an error)

    • Dismiss the complaint

  • Determinations are legally binding and enforceable in court.

Tips for a Successful Claim

  • Be Clear and Concise: Outline your complaint and desired outcome clearly.

  • Provide Evidence: Include all relevant documents to support your case.

  • Follow Procedures: Ensure you have completed the IDRP process before escalating to the Ombudsman.

  • Seek Advice: Consult a legal advisor.