Select Committee · Public Accounts Committee

AEA Technology Pension Case

Status: Closed Opened: 20 Jan 2023 Closed: 24 Sep 2023 3 recommendations 17 conclusions 2 reports

Following its work on the British Steel Pension Scheme , the Committee will question Government Actuary Martin Clarke and Karl Banister, Director of Operations, Legal and Clinical, from the Parliamentary and Health Service Ombudsman on the Atomic Energy Agency Technology pension case. This inquiry is based on an ongoing NAO investigation which will set out …

Clear

Reports

2 reports
Title HC No. Published Items Response
Correspondence from Peter Schofield CB, Permanent Secretary… 23 Nov 2023 0
Fifty-Seventh Report - AEA Technology Pension Case HC 1005 14 Jun 2023 20 Responded

Recommendations & Conclusions

7 items
2 Recommendation Fifty-Seventh Report - AEA Technology P… Rejected

Ensure independent review for AEAT pension scheme members' long-standing complaints.

AEAT pension scheme members have been passed from one part of government to another, with no department taking overall responsibility for their complaints. Scheme members have raised complaints with government since 2012 covering a range of issues that involve several government organisations, including departments and regulators. The Department for Work …

Government response. The government disagrees with the recommendation, stating that complaints have already been considered by ombudsmen whose remits are statutory policy matters. It adds that the 2013 Fair Deal policy prevents similar situations from arising again.
HM Treasury
1 Conclusion Fifty-Seventh Report - AEA Technology P… Rejected

Evidence heard from DWP, GAD, and PHSO regarding AEAT privatised pensions.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Work & Pensions (DWP), the Government Actuary’s Department (GAD) and the Parliamentary and Health Service Ombudsman (PHSO) on the pensions transferred to AEA Technology (AEAT) when it was privatised.1

Government response. The government disagrees, stating that Pension Protection Fund indexation rules are set out in legislation and changing them would require a change in law, which is a policy matter.
HM Treasury
8 Conclusion Fifty-Seventh Report - AEA Technology P… Rejected

AEAT pension members lose significant real value due to inadequate inflation protection in PPF.

Since the scheme entered the PPF, members have lost money in real terms each year because the compensation they receive does not include rises for inflation. PPF compensation initially provides members 100% of their pension if they had already reached the scheme’s normal pension age, or 90% for those who …

Government response. The government rejects the recommendation, stating that changing the Pension Protection Fund indexation rules would require legislative change and is therefore a policy matter on which they cannot respond further.
HM Treasury
9 Conclusion Fifty-Seventh Report - AEA Technology P… Rejected

AEAT pension scheme members received unsatisfactory and inconsistent responses to their long-standing complaints.

From 2012 onwards, scheme members raised a series of complaints with multiple government organisations and were dissatisfied with the responses they received. In July 2013, DWP produced a factsheet summarising the complaints government had received and a response to each on behalf of the government. In February 2014, it then …

Government response. The government rejects the conclusion, stating that complaints were already considered by relevant government bodies. They indicate that changing an ombudsman's remit is a policy matter, and existing 2013 Fair Deal policy prevents similar circumstances from reoccurring.
HM Treasury
10 Conclusion Fifty-Seventh Report - AEA Technology P… Rejected

Government departments showed unclear responsibility for AEAT pensions, creating further confusion for members.

When we asked it why no part of government had taken responsibility for the issue, DWP described pensions policy as a complex and wide-ranging area which touches on a number of departments. DWP is responsible for private sector pensions rather than public sector pensions, which it told us are the …

Government response. The government rejects the recommendation, stating that changing the ombudsman's remit is a policy matter and the 2013 Fair Deal policy prevents similar situations from reoccurring.
HM Treasury
11 Conclusion Fifty-Seventh Report - AEA Technology P… Rejected

Government has not independently reviewed AEAT complaints, and ombudsman services lack jurisdiction for investigation.

Government has not commissioned any independent review into the complaints raised by AEAT members, and all of the relevant ombudsman services have said they cannot investigate the information government provided in 1996.19 PHSO told us it is unable to investigate personnel and superannuation matters, and that this would require a …

Government response. The government rejects the recommendation, stating that changing the ombudsman's remit is a policy matter and the 2013 Fair Deal policy ensures similar circumstances will not reoccur in the future.
HM Treasury
12 Conclusion Fifty-Seventh Report - AEA Technology P… Rejected

Government’s Fair Deal policy seeks to prevent future pension issues, yet ombudsman jurisdiction gaps persist.

We asked how government can ensure that, if a similar thing were to happen again, pensioners making complaints would not be shunted from pillar to post in trying to make appeals and getting no advice or satisfaction. DWP told us that the government’s Fair Deal policy introduced in 2013 means …

Government response. The government rejects the recommendation, stating that changing the ombudsman's remit is a policy matter and the 2013 Fair Deal policy ensures similar circumstances will not reoccur in the future.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
13 Mar 2023 Karl Banister · Parliamentary and Health Service Ombudsman, Martin Clarke · Government Actuary’s Department (GAD), Tom Josephs · Department for Work and Pensions View ↗

Correspondence

3 letters
DateDirectionTitle
11 Jul 2023 Correspondence from William Wragg MP, Public Administration and Constitutional …
17 Apr 2023 Correspondence from Tom Josephs, Director, Private Pensions and Arm’s Length Bo…
17 Apr 2023 Correspondence from Martin Clarke, Government Actuary, Government Actuary’s Dep…