Our Ref: LGR 85/18/132

 

January 1999


492      INDEX

 

LOCAL GOVERNMENT PENSION APPEAL

 

SUPPERANNUATION ACT 1972

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1995 (the 1995 regulations)

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

 

1.                I refer to your letter received by the department on 10 November 1998 in which you appeal (under regulation 102 of the 1997 regulations) to the Secretary of State for the Environment, Transport and the Regions against the decision of XXX, the Appointed Person.

2.                The Appointed Person upheld the decision of the XXX Authority (XX) to collect arrears of contributions from your retirement pension.  You maintain you should not have to pay these contributions as it was the XX’s mistake in not collecting them at the time they were due.

3.                The question for decision: The question for decision by the Secretary of State is whether you are now required to pay arrears of pension contributions.

4.                Secretary of State’s decision: The Secretary of State has taken into account the appropriate regulations.  He finds that you are required to pay the outstanding arrears of pension contributions.  His decision confirms that made by the Appointed Person.

5.                The Secretary of State’s powers under regulations 102 and 103 of the 1997 regulations are to reconsider the original disagreement referred to the Appointed Person under regulation 100.  This regulation refers to a matter relating to the local government pension scheme (LGPS), which effectively means whether the LGPS regulations have been correctly applied in the circumstances.  When you retired from local government employment, the 1995 regulations were in force.  Regulation C4 required you to pay contributions on your remuneration, which included the money value of the benefit of a reduced rent.  Where the XX did not collect contributions, regulation C25(3) allowed them to recover contributions owed by deducting them from your benefits.  This regulation did not restrict the method used to collect contributions nor did it stop the XX recovering contributions not collected due to their mistakes or omissions.  The Secretary of State has no appropriate powers to order redress where such a mistake or omission has occurred and cannot therefore reasonably consider this issue; he simply has to be sure that the pension regulations are now being properly applied.  He is satisfied that in your case they are.

6.                In making his decision the Secretary of State is acting judicially and has no power to modify the way the regulations apply to the facts of the case.  Having made his decision he has no power to alter it but you may refer the matter to the Pensions Ombudsman or to the High Court.  Because of this the Secretary of State’s officials cannot discuss the case further.

7.                This completes the second stage of the internal disputes resolution procedure.  The Pensions Advisory Service (OPAS) is available to assist members and beneficiaries in connection with difficulties which they have failed to resolve.  Their address is 11, Belgrave Road, London, SW1V 1RB (telephone number 0171 233 8080).

8.                The Pensions Ombudsman may investigate and determine any complaint or dispute of fact or law in relation to the LGPS made or referred in accordance with the Pensions Schemes Act 1993.  His address is 11, Belgrave Road, London, SW1V 1RB (telephone number 0171 834 9144).