The Pensions Ombudsman
Section 274: The Pensions Ombudsman and Deputy Pensions Ombudsmen
1102.Subsections (1) and (2) of this section amend section 145 of the Pension Schemes Act 1993, which established the office of the Pensions Ombudsman. The amendments provide that the Pensions Ombudsman may resign or be removed from his office only on the grounds set out in his terms and conditions of appointment.
1103.At present, section 145(4C) of the Pension Schemes Act 1993 enables the Pensions Ombudsman to delegate his functions to any of his employees, but he cannot delegate the determination of complaints made and disputes referred to him. This means that if the Pensions Ombudsman was incapacitated, or if he died or resigned from his office, no determinations could be made until a new Pensions Ombudsman was appointed. Alternatively, if the Pensions Ombudsman had a particularly heavy workload, complaints and disputes awaiting determination might be delayed while he determined outstanding complaints and disputes.
1104.Subsection (3) of this section inserts a new section 145A into the Pension Schemes Act 1993.
1105.New section 145A(1), (2) and (3) provides for the appointment of one or more persons to act as a deputy to the Pensions Ombudsman. A Deputy Pensions Ombudsman will have all the functions and powers of the Pensions Ombudsman and will be appointed upon such terms and conditions as the Secretary of State may think fit.
1106.New section 145A(4) sets out the circumstances in which a Deputy Pensions Ombudsman may carry out the functions of the Pensions Ombudsman. The circumstances are:
where there is a vacancy in that office;
at any time when the Pensions Ombudsman is for any reason unable to discharge his functions; and
at any other time, with the consent of the Secretary of State (such as when the Pensions Ombudsman’s workload means the assistance of a Deputy is appropriate).
1107.New section 145A(5) provides that all the provisions in legislation relating to the performance of the Pensions Ombudsman’s functions are to be interpreted as including a Deputy Pensions Ombudsman who is performing those functions.
1108.New section 145A(6) provides for the Secretary of State to pay to, or in respect of, a Deputy Pensions Ombudsman, remuneration, compensation for loss of office, pension, allowances and gratuities, or other benefits as determined by the Secretary of State. This provides similar provisions to those relating to the Pensions Ombudsman.
1109.Subsection (4) provides that any Deputy Pensions Ombudsman is to be added to the persons disqualified from being elected as a Member of Parliament (and consequently, disqualifies him or her from being elected as a Member of the European Parliament). This brings the position regarding a Deputy Pensions Ombudsman in line with the existing position regarding the Pensions Ombudsman.
1110.Subsection (5) provides for both the Pensions Ombudsman and any Deputy to the Pensions Ombudsman to be disqualified from being elected to the Northern Ireland Assembly. This mirrors the position of disqualifying the Pensions Ombudsman and any Deputy Pensions Ombudsman from being elected as a Member of Parliament.
1111.Subsections (6) provides for a Deputy Pensions Ombudsman to join a pension scheme established under section 1 of the Superannuation Act 1972 by the Minister for the Civil Service. Subsection (7) enables the Pensions Ombudsman to pay to the Minister for the Civil Service any amount that the Minister may direct in respect of a person who is a Deputy Pensions Ombudsman joining such a scheme. Subsection (8) requires the Pensions Ombudsman to make payments to the Minister for the Civil Service, where such payments are directed, in respect of the Pensions Ombudsman’s and his employees’ membership of a pension scheme established under section 1 of the Superannuation Act 1972.
Section 275: Jurisdiction
1112.In the case of Brittanic Asset Management v. the Pensions Ombudsman, the Court of Appeal drew a distinction between a person who undertakes “an act of administration concerned with the scheme” and a person “concerned with the administration of the scheme”. It noted that the former fell outside the Pensions Ombudsman’s jurisdiction. This section provides that the Pensions Ombudsman will be able to investigate complaints involving “one-off” acts of administration.
1113.Subsection (1) inserts a new subsection (4A) into section 146 of the Pension Schemes Act 1993. Under section 146(4), regulations may treat a person who is not a trustee, manager or employer, but who is concerned with the financing or administration of, or the provision of benefits under, a pension scheme as though he were a person responsible for the management of the scheme. Section 146(4A) provides that a person or body of persons is concerned with the administration of a scheme where the person or body is responsible for carrying out an act of administration concerned with the scheme.
1114.Subsection (2) provides that new section 146(4A) will not have retrospective effect and will only apply in relation to disputes and complaints in relation to matters taking place on or after the date the new section 146(4A) comes into force.
1115.Subsection (3) provides that for the purpose of subsection (2), questions in relation to the carrying out of a sole trustee’s functions are to be treated as a “dispute”. This allows them to come within the ambit of subsection (2).
Section 276: Investigations
1116.This section repeals section 54 of the Child Support, Pensions and Social Security Act 2000 and removes the amendments made to sections 148, 149 and 151 of the Pension Schemes Act 1993 by that section. Section 54 was brought into effect for the purposes of making rules and regulations only, and no rules or regulations have ever been made. Section 54 is repealed by subsection (1). Subsection (2) repeals the amendments made to sections 148, 149 and 151 of the Pension Schemes Act 1993.