Pension schemes and providers will welcome a new focus on tackling the historic backlog of complex cases as the UK’s Pensions Ombudsman (PO) continues to seek extra resources to swiftly and properly deal with timing and staffing issues, an expert has said.
The PO recently published its annual report (128 pages / 5.3 MB) setting out focus areas for the coming year. The report and accounts revolve around PO activity for the year to 31 March.
Charlotte Scholes, pensions law expert at Pinsent Masons, said: “The PO’s efficiency drive is making headway which is positive for both trustees and complainants, but the rise in the number of PO complaints – many of which appear to be increasingly complex – still continues to present a challenge for the PO’s office”.
The focus areas set out in the report include clearer information for customers in a bid to reduce invalid applications. The PO is also aiming to optimise “lead cases” where possible to inform complaints handling and reduce complaint numbers. Other focus areas are expedited decisions and “robust triage”.
The number of complaint closures fell during the latest report period, compared with 2022-23, owing to the June 2023 cyber incident, challenges in recruiting and retaining skilled staff on fixed-term contracts, and an increase in complex cases on the historical caseload. A total of 6,923 new pension complaints were received, and 6,634 were closed - 4,788 at assessment stages, 1,268 through the resolution service, 578 through formal adjudication, 245 by determination.
The long-term trend of a growing number of complaints, which are increasingly complex, is projected to continue with new complaints in 2023-24 up by 9%. Additionally, complaints to end of September this year are higher than in previous years and higher than forecast.
One issue identified is the increasing time taken for complaints to be actioned and resolved. During this reporting period, active complaints aged over 18 months increased by 23% with waiting times for assessment currently averaging 12 months. The average wait for the assignment of a caseworker for resolution is 11 months, with an expected 15 month waiting time to be assigned a caseworker for adjudication.
The PO is now increasing the size of teams in hopes of closing the growing number of complex cases. The PO also pledged to give the larger teams extra support via its legal team, with a funding settlement to support a more permanent staffing strategy described as “critical”.
In terms of appeals, the report highlighted continued stability with five outstanding appeals against PO determinations in England and Wales as at the year end.
A Public Bodies Review of the PO is due, after which the PO will implement “an ambition transformation plan”, building on the changes in the operating model review. Increased work between the Pensions Dishonesty Unit (PDU) and the Pension Regulator (TPR) is also highlighted in the latest report and accounts. The PDU has alerted the TPR to schemes that may require the appointment of an independent trustee and the bodies are considering how to make more use of their combined powers.
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