Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Deferred
Pensions Ombudsman faces remit limitations, Limitation Act barriers, and inadequate data retention protocols.
Conclusion
The Pensions Ombudsman may also be a suitable body to investigate the administration and management of pension schemes, as it is the expert in government for investigating pensions complaints.32 However, it has no remit over the role of GAD in providing information to scheme members. The Pensions Ombudsman could in theory have examined UKAEA as the outgoing employer, but not AEAT itself as it no longer existed. However, it decided that even if it did investigate information provided by UKAEA, the Limitation Act 1980 means it would not be able to award any remedy as more 25 Qq 47–48 26 C&AG’s Report, para 3.8 27 C&AG’s Report, para 16 28 Qq 8–9 29 Qq 50, 56; C&AG’s Report, para 3.9 30 C&AG’s Report, para 3.10 31 Qq 41–45 32 Qq 9, 74 12 AEA Technology Pension Case than 15 years had passed between the original transfer of pension benefits and when the complaints were made.33 Government protocols for retaining data may also often prevent relevant information being maintained for long enough to be reviewed in cases involving pensions. Pensions are long-term financial products, and problems can take many years to become apparent.34 DWP told us that the Pensions Ombudsman is reviewed on a regular basis, and that its next review later this year may be a good opportunity to look at the role of the ombudsman.35 Government support for complex financial decisions
Government Response Summary
The government agrees with the recommendation and will conduct an independent review of The Pensions Ombudsman in Autumn 2024, stating the department can request the reviewer considers other areas that would benefit from their consideration.
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.