THE PENSIONS ADVISORY SERVICE 09 December 2009

1. THE PENSIONS ADVISORY SERVICE 09 December 2009 Tony Attubato Technical Manager

3. What is TPAS? • Founded in 1983 as the Occupational Pensions Advisory Service (OPAS) • Voluntary organisation • Government funded from 1990 • Changed name from OPAS to The Pensions Advisory Service (TPAS)

4. TPAS’ Service • Information & Guidance • Dispute Resolution • Talks in the Workplace

5. TPAS • Voluntary service • Approx 450 volunteers • Involved with all aspects of our service

6. Dispute Resolution

7. What do people complain about?

8. Dispute Resolution • Independent • Involvement usually welcomed by all parties • Conciliate and mediate • No statutory powers • Solution not binding

9. Incorrect information Overpayments Mistakes…

10. Change of Position • Change of position is a defence to a claim in unjust enrichment, or for a restitution. Ordinarily, someone who has been unjustly enriched at the expense of another is strictly liable to discharge his gains. However, a “change of position” defence operates where it would be inequitable to compel him to make restitution. - Wikipedia

11. Change of Position – Step 1 • Should the member have known?

12. Change of Position – Step 2 • Direct reliance?

13. Change of Position – Step 3 • Mitigation

14. Compensation… • Overcome financial loss directly caused by a mistake • Westminster CC v Haywood [1998] • Distress and inconvenience

15. Ill-health retirement…

16. Ill-health retirement… We can’t… • Advise whether or not the medical evidence is sufficient • Advise whether or not a pension should be paid • We are not medical experts!

17. Ill-health retirement… • Where can we help? • The decision-making process • Edge & others v Pensions Ombudsman and another • adopt a correct construction of the scheme rules • the decision maker must ask the right questions • only take account of relevant factors & ignore irrelevant factors • not make a perverse decision

18. Mrs Cotton is aged 55 Suffering from stress, anxiety, depression Applies for ill-health retirement Application refused because there are treatment options available. Ill-health retirement…

19. Will treatment likely help Mrs C return to work? Otherwise, the fact there are treatment options available may be irrelevant Ill-health retirement…

20. Ill-health retirement… Tancred v the Department for Education & Skills Round 1 (N00507)

21. Ill-health retirement… Tancred v the Department for Education & Skills Round 2 (P01315)

22. Ill-health retirement… Tancred v the Department for Children, Schools & Families Round 3 (16364/4)

23. Death benefit complaints…

24. Death benefit complaints… • Where can we help? • The decision-making process • Edge & others v Pensions Ombudsman and another • adopt a correct construction of the scheme rules • the decision maker must ask the right questions • only take account of relevant factors & ignore irrelevant factors • not make a perverse decision

25. Death benefit complaints… • Miss C B – fiancée of Mr B • Miss S B – daughter of Mr B • Will dated 6/97 pension rights to be paid to Miss S B • Nomination form dated 9/97 death grant should be paid to Miss C B • Mr B died 4 January 2000 • Death grant paid to Miss S B

26. Death benefit complaints… • What are the rules? • Could Miss S B receive any benefit? • Had the Council misapplied their rules? • Have only relevant factors been taken account of? • Have the right questions been asked? • Was the decision perverse?

27. Death benefit complaints… • 1997 - Mr Mc completes expression of wish form nominating his two grown-up sons as beneficiaries • 2006 – Mr Mc dies • Insurer decides to pay 50% to Mrs Mc and 25% each to the sons

28. Death benefit complaints… • Insurer – it was a reasonable decision • Ombudsman – no evidence of what was taken into account • “all they can reasonable say is that the decision they reached is one that may be reasonable.” • Directed the insurer to obtain all material evidence, take a fresh decision and give reasons to the affected persons

29. Thank you for listening