Dispute resolution procedures

The Pensions Act 1995 required Trustees to put in place an Internal Disputes Resolution Procedure.  The procedure must cover disputes between the trustees and members (active, deferred or pensioner), prospective members or beneficiaries.  It does not have to cover disputes with the employer or disputes which are being investigated by the Pensions Ombudsman, a Court or another outside body.

The trustees can choose whether to have either a one or two stage process for dealing with complaints.

One-stage process

The complaint must be considered by the Trustees who must issue a formal response within 4 months from the date of receiving the application.  The complainant must be notified of the Trustees' decision within 15 working days of the decision being made.

The Trustees must advise the complainant about the services of the Pensions Advisory Service (TPAS) and the Pensions Ombudsman in the formal response.

Two-stage process

A 'specified person' is appointed by the Trustees to consider the complaint at the first stage. The 'specified person' is usually the Pensions Manager or Secretary to the Trustees but can be anyone.

The 'specified person' must issue a formal response within 4 months from the date of receiving the application.  The complainant must be notified of the Trustees' decision within 15 working days of the decision being made.

The 'specified person' must advise the complainant about how to proceed to the second stage of the IDRP and also about the services of TPAS and the Pensions Ombudsman and in the formal response.

If the complainant is not happy with the specified person's decision, they can proceed to the second stage of the IDRP.  The Trustees will set a time limit for this.  It is usually 6 months from the date of receiving the specified person's decision.

The second stage is dealt with by the Trustees.  Again, the Trustees must issue a formal response within 4 months from the date of receiving the application.  The complainant must be notified of the Trustees' decision within 15 working days of the decision being made.