Pensions ombudsman Anthony Ater. Photo by Rob Kennard
The Pensions Ombudsman (TPO) has launched a trial process to improve the outcomes and recoveries for members in cases of pensions dishonesty.
In such cases, the adjudication service is now seeking to enjoin a scheme's appointed professional trustee - sometimes chosen by The Pensions Regulator (TPR) - with an aim to make a finding that affects the whole membership.
This was the approach taken in the Norton Motorcycles case last year, where the ombudsman ordered a repayment of £14m, plus an award for distress, after finding Stuart Garner to have "acted dishonestly" and in breach of several duties.
Dalriada Trustees was appointed to the scheme by TPR, and TPO then asked Dalriada to join the complaint to ensure any decision affected the entire membership.
Speaking at Professional Pensions' PP Live conference yesterday (14 September) ombudsman Anthony Arter said he was "excited" by the prospects, noting: "There has been an undoubted increase in the number of complaints about dishonesty."
The pilot, if successful, is a "really important step and a really important part of my work", he said.
It comes amid a tough year for TPO as it deals with a backlog of cases, exacerbated by the pandemic, and prepares for a surge in new cases that are expected to come about as a consequence of the pandemic.
For example, Arter noted an increase in complaints relating to delayed processes at, for example, NHS and local authority schemes, who faced other pressures on their time. Nevertheless, TPO must adjudicate and Arter said: "We have a lot of catching up to do with limited resources."
The ombudsman is anticipating an increase of at least 10% in cases in 2021/22, the same age in 2022/23 and another 5% rise in 2023/24. Last year, it saw a 2% reduction.
"What has happened is a steadily increasing number of pension complaints every year and, although static over the last year, the numbers are now increasing again.
"This would accord with the pattern of complaints that we received after the 2008 financial crisis."
Extra cases are expected to come from areas including transfers, scams, the dashboard, auto-enrolment compliance, and pensions dishonesty.
