LOCAL GOVERNMENT PENSION SCHEME APPEAL

 

SUPERANNUATION ACT 1972

LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)

 

1)      I refer to your letter of 23 May 2000 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 Mr XXX, the Appointed Person for the XXX Fund, in relation to your local government pension scheme (LGPS) dispute with XXX (the company).

 

2)      The disagreement you referred to the Appointed Person concerned the pensionable remuneration used to calculate your LGPS benefits in 1985.  It is noted, from the evidence provided, that in 1985 your employment ceased early when the company made you redundant, and that your LGPS benefits were paid immediately, calculated on pensionable remuneration of £8,817.  You consider the payments made to you for “call-out duties” should have been included in your pensionable remuneration. 

 

3)      Under the 1997 regulations a person has 6 months from when a decision is taken to refer the matter to the Appointed Person, or such further period as he considers appropriate.  The Secretary of State considers you had six months from when you were notified of your LGPS benefits in 1985 to refer the matter on appeal.  However, at that time any such appeal would have been made direct to the Secretary of State and the appellant had 3 months from receiving notification to refer the matter to him, or such longer period he considered reasonable.  No evidence has been provided to explain why the disagreement was not referred earlier nor has the Appointed Person explained why he considered it reasonable to accept your disagreement outside the 6 month period.  However, the Appointed Person did consider and decide the disagreement you referred to him and found “… no evidence to demonstrate that the additional remuneration you received for call-out duties should have been treated as pensionable remuneration.”.  He dismissed your appeal.

 

4)      The Secretary of State takes the view that your disagreement arose in July 1985, when your LGPS benefits became payable.  He notes that, when a person considers he has a claim or grievance, the law requires him to pursue it with reasonable diligence.  You were made redundant in 1985 and your LGPS benefits were paid immediately.  No evidence has been produced to show that you registered a dispute or questioned the pensionable remuneration used to calculate your benefits at that time or subsequently until the company sent you a letter in October 1997, in reply to a letter you had sent them.  In this letter they explained that the call-out payments were not pensionable as they were not regular or guaranteed.  It appears from the evidence available that it was not until December 1999 (following a letter from Mr XXX, Pensions Manager, of 10 December 1999) that you referred the disagreement to the Appointed Person.  The Secretary of State has seen no explanation to satisfy him as to why you could not have pursued any such claim either in 1985 or at the time the company explained the position in October 1997.  He therefore concluded that you have not pursued your claim with reasonable diligence and it cannot now be taken to be a dispute which he can consider on appeal.

 

5)      This completes the second stage of the internal dispute 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 0207 233 8080).

 

6)      The Pensions Ombudsman may investigate and determine any allegation of maladministration or any complaint or dispute of fact or law in relation to the LGPS made or referred in accordance with the Pension Schemes Act 1993.  His address is 11 Belgrave Road, London, SW1V 1RB (telephone 0207 834 9144).