Internal Dispute Resolution Procedure (IDRP)
Contents
IDRP
Every time you make a decision about a member under the scheme rules, you must notify that member in writing. Decisions cover a wide variety of issues from joining the scheme and contribution rates, through to leaving the scheme and resulting benefits.
If the decision is that a person is not entitled to a benefit, that person must be told why that decision has been reached; if the decision is about the amount of benefit, the person must be told how the benefits were worked out.
If the person is not happy with the decision, then they have a right to complain. By law, an occupational pension scheme must have a procedure to deal with member's concerns or complaints and this is called an Internal Dispute Resolution Procedure (IDRP).
Ultimately, if a member is not happy with what happens through this system, they can take their case to the Pensions Ombudsman. Individuals also have the right to use the dispute rules if a decision should have been made by the employer or the Administering Authority and given to them but remains outstanding.
Before the member makes a formal complaint, they should be encouraged to contact you or Surrey Pensions Team in order that the matter is resolved in an informal way. This avenue should be promoted in the first instance as misunderstandings and errors can sometimes be amicably resolved without recourse to formal complaint.
The procedure
The formal complaint procedure has two stages.
Any complaint made should be treated seriously and considered thoroughly and fairly. An individual can ask someone to take their complaint forward on their behalf. This could be, for instance, a trade union official, welfare officer, husband, wife, partner, or friend.
At any stage before or during the formal complaint procedure the Pensions Ombudsman can be contacted in a less formal capacity for assistance and advice.
Stage 1
If a person needs to make a formal complaint, they should make it in writing and normally within 6 months of the day when they were told of the decision about which they want to complain.
If the complaint is about a lack of a decision, then it should normally be made within 6 months of the date the decision should have been made. Some examples of employer decisions that might be complained about are ill –health retirement, pensionable pay, scheme entry and contributions.
The complaint will be considered carefully by a person nominated by the body that took the decision against which the person is complaining. This person is referred to as the "adjudicator". The Local Government Pension Scheme (LGPS) regulations state that the employer must appoint an adjudicator to consider and make decisions on such applications.
The adjudicator has the power to extend the 6-month time-limit mentioned above. If the adjudicator's decision is contrary to the original decision complained about, the employer or Administering Authority who made that original decision will then have to deal with the case in accordance with the adjudicator's decision.
If the decision complained about concerned the exercise of a discretion by the employer or Administering Authority, and the adjudicator decides that the employer or Administering Authority should reconsider how they exercised their discretion, they will be required to reconsider their original decision.
Stage 2
The complainant can ask the Administering Authority to take a fresh look at the complaint in any of the following circumstances:
- They are not satisfied with the adjudicator's first-stage decision
- They have not received a decision or an interim letter from the adjudicator, and it is 3 months since they lodged their complaint
- It is one month after the date by which the adjudicator told them (in an interim letter) that they would give a decision, but they have still not received that decision
This review would be undertaken by a person not involved in the first stage decision. Again, the complaint must be made in writing and the Administering Authority will consider the complaint and give their decision in writing.
If the complainant is still unhappy following the administering authority's stage 2 decision, they can take their case to the Pensions Ombudsman for formal adjudication provided they do so within 3 years from the date of the original decision (or lack of a decision) about which they are complaining.
MoneyHelper
MoneyHelper offer a free service to all members of pension schemes who require information or guidance in relation to their pensions. They also have local advisors who can help to explain and obtain more information about scheme member's pensions for them.
Individuals can normally contact a MoneyHelper advisor through their local Citizen's Advice Bureau or on the MoneyHelper website or by telephone on 0800 011 3797.
The Pensions Ombudsman (TPO)
The Pensions Ombudsman can investigate complaints of maladministration or disputes of fact or law about decisions that have been made about pensions, but the procedures laid down in the dispute rules must have been gone through first.
This means that a person must first take their complaint through Stage 1 and Stage 2 of IDRP before the Pensions Ombudsman will investigate it.
The Pensions Ombudsman can be contacted for help at any time if a person is having difficulties in sorting out their complaint under the dispute rules.
The Pensions Ombudsman will assist members during the IDRP process on a less formal basis and investigate complaints or disputes about the handling of a case at either stage of the IDRP process.
When the Pensions Ombudsman makes a decision regarding a complaint that has been made, you and/or Administrating Authority must abide by this, depending on the resolution instructions.
Individuals can contact the Pension Ombudsman at enquiries@pensions-ombudsman.org.uk or by telephone on 0800 917 4487.