The latest Pensions Ombudsman’s Annual Report (for 2014) provides useful statistics, case studies and trends in relation to complaints received by and the activities of the Pensions Ombudsman (PO). In the Report, the PO emphasises the importance of issuing easily understood information to members especially in scheme wind-up situations and in instances where there are benefit reductions under a Section 50 direction of the Pensions Authority. The PO also cites a number of other trends, including complaints arising from the transfer of benefits outside the jurisdiction and the virtual impossibility of transferring benefits to places such as Australia.
The PO notes that in recent years the Office has moved away from issuing legally binding determinations and instead favours adopting a less formal mediation or guidance approach. Less than 7% of cases ended in a legally binding determination. The PO notes that there was a reduction in the number of cases submitted to the Office and suggests that the recovery on investment markets and the improvements in pension fund values may have played a part. In 2014, the Office received 1,323 new cases which is a 30% reduction on the 2013 figures. The majority of larger cases relate to the calculation of benefits, incorrect/late/no benefit payments and issues regarding the disclosure of information. (click here for link to the Pensions Ombudsman’s Annual Report)
Comment
The Office of the Pensions Ombudsman is expected to amalgamate with the Financial Services Ombudsman’s Bureau. This will lead to a pooling of resources. It remains to be seen how the amalgamation will work in practice and whether it will have a positive effect on the functions of the Office of the Pensions Ombudsman.
PRSAs and USC
The Finance Act 2015 amended certain provisions relating to PRSAs. PRSAs are now to be treated in the same manner as occupational pension schemes where employer contributions do not attract a Universal Social Charge (USC) liability for the employee. Thus employer contributions to a PRSA will no longer attract a USC liability for the employee.
Comment
This change levels the playing field between occupational pension schemes and PRSAs. The change may help to increase the attractiveness of PRSAs to both employers and employees.
Pensions Authority Renames Online Portal to Pensions Data Register
In December 2015 the Pensions Authority announced that it was changing the name of its online portal from Interactive Scheme Information System (ISIS) to the Pensions Data Register (PDR).
Comment
The Pensions Authority has stated that the name change is to reflect the importance and growing emphasis placed on data reporting, data submissions and data analysis both in the Authority and among regulated entities.
Contributed by Michael Keane & Ciara McLoughlin
