Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Deferred
PHSO's legislative remit contains significant gaps preventing investigation of AEAT pension cases.
Conclusion
PHSO described to us the gaps in its remit which prevent it from providing pension scheme members with a route to appeal in this case or in similar situations. PHSO explained that its jurisdiction only allows it to investigate GAD on a very specific point about insurance companies during a defined period of time, following an amendment to its legislation that allowed it to investigate the Equitable Life pensions case. Apart from this, Schedule 3 of PHSO’s legislation prevents it from looking into personnel and superannuation matters which means it cannot examine information of the type that GAD provided in 1996. An amendment would be needed to the legislation for PHSO to able to look into the AEAT case or similar issues and have powers to make recommendations to government.31
Government Response Summary
The government agrees with the observation, stating that The Pensions Ombudsman will undergo an independent review in 2024, during which the department can request consideration of additional areas, without committing to amend PHSO's legislation.
Government Response
Deferred
HM Government
Deferred
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2024. 3.2 The Pensions Ombudsman (TPO) is scheduled to have its independent arm’s-length body (ALB) review in 2024, as part of the Cabinet Office review programme and in accordance with the Partnership Code of Good Practice. The aim of the review is to provide a robust challenge on the governance, accountability, efficacy, and efficiency of the ALB. The department can, in addition, request that the independent reviewer considers other areas that would benefit from their consideration. The review will be led by an independent reviewer appointed by the Secretary of State for Work and Pensions. The reviewer will report to the Secretary of State and be supported during the Review process by the department. 3.3 TPO currently has significant powers to deal with complaints of maladministration and disputes of fact or law. TPO’s current time limits give the Ombudsman a wide level of discretion, subject to the Limitation Act 1980 restrictions. It should be noted that the Limitation Act 1980 is distinct from TPO’s own time limit statutory framework and affects all types of civil proceedings, not just those that relate to pensions.