Employers
In this section:
Internal Dispute Resolution Procedure (IDRP)
When you make a decision about a member under the pension scheme rules, you must tell them about the decision in writing.
This could include decisions about:
Joining the scheme
Contribution rates
Leaving the scheme
The benefits they will receive
If the decision is that a person is not entitled to a benefit, that person must be told why that decision has been reached.
If the decision is about the amount of benefit, the person must be told how the benefits were worked out.
If a member disagrees with a decision
Members have the right to complain if they are unhappy with a decision.
Occupational pension schemes are legally required to have a procedure for dealing with member concerns and complaints. This is called an Internal Dispute Resolution Procedure (IDRP).
A member can also use the IDRP if a decision that should have been made by the employer or the Administering Authority has not been made.
Before making a formal complaint, members should be encouraged to contact you to see if the issue can be resolved informally. Some complaints are caused by misunderstandings or errors that can be resolved without using the formal process.
If the issue cannot be resolved informally, the member can use the IDRP. If a member is not happy with the outcome of the IDRP, they can take their case to The Pensions Ombudsman.
How the IDRP works
The formal IDRP has two stages.
Any complaint made should be treated seriously and considered thoroughly and fairly.
A member can ask someone to take their complaint forward on their behalf. This could be:
A trade union official
A welfare officer
Their husband, wife or partner
Stage 1
A member should make their complaint in writing, normally within 6 months of the date they were told about the decision.
If their complaint is because a decision has not been made, they should normally complain within 6 months of the date the decision should have been made.
Some examples of employer decisions that might be complained about are:
Ill-health retirement
Pensionable pay
Joining the scheme
Pension contributions
Who considers a stage 1 complaint
The complaint must be considered by someone appointed by the organisation that made the original decision. This person is known as the adjudicator.
Under the Local Government Pension Scheme (LGPS) regulations, employers must appoint an adjudicator to consider and make decisions on IDRP applications.
You must tell the Pensions Shared Service who your nominated IDRP contact is by emailing PSSEmployers@richmondandwandsworth.gov.uk.
The adjudicator has the power to extend the normal 6-month time limit for complaints.
If the adjudicator decides that the original decision was wrong, the employer or Administering Authority must deal with the case in accordance with the adjudicator's decision.
If the original decision involved the employer or Administering Authority using its discretion and the adjudicator decides that they should reconsider how they exercised their discretion, they will be required to reconsider their original decision.
Stage 2
The member can ask the Administering Authority to review their complaint if:
They are not satisfied with the stage 1 decision
They have not received a decision or an interim letter from the adjudicator within 3 months of making their complaint
The adjudicator sent an interim letter giving a date for their decision, but the member has still not received a decision 1 month after that date
The stage 2 review will be carried out by someone who was not involved in the stage 1 decision.
The stage 2 complaint must be made in writing. The Administering Authority will review the complaint and give the member its decision in writing.
If the member is still unhappy
If the member is still unhappy after the stage 2 decision, they can ask The Pensions Ombudsman to consider their complaint.
They must do this within 3 years of the original decision, or the date when a decision should have been made.