Clause 16
Pensions Bill
2:00 pm
Nigel Waterson (Shadow Minister, Work & Pensions; Eastbourne, Conservative)
I beg to move amendment No. 89, in clause 16, page 19, line 36, at end insert—
‘(4B) Upon becoming aware of a matter of dispute, the specified person, or trustees or managers if appropriate, should acknowledge receipt and advise the person or persons with an interest in the scheme, in writing, of the existence of the Pensions Advisory Service and the assistance it can provide in relation to the dispute resolution.’.
Before dealing with the meat of the amendment, perhaps I may make a general point. Although the basic provisions in clause 16 for dispute resolution arrangements make for fascinating reading, as far as I can determine they are pretty uncontroversial. Outside bodies seem perfectly happy with them, so who am I to say any different?
The only amendment that we have tabled is at the behest of the Pensions Advisory Service, which erupted on to the scene at the end of last week with this wording. The Minister may be able to tell me something different, but it seems to me that PAS is making an eminently sensible, workmanlike and practicable suggestion. For those members of the Committee who are not aware of PAS, it is an independent organisation, but it is funded by grant in aid from the Department for Work and Pensions. Speaking as a constituency MP, I believe that it does excellent work in trying to resolve a lot of complaints, problems and concerns that individuals have about pensions issues. Indeed, in its briefing note PAS says:
“In the period April 2005 to March 2006...88% of the complaints”—
that is 88% of the complaints referred to them—“were resolved” and no further action was required by any other body. That is extremely impressive; it presumably makes matters much less stressful for the individuals involved, and presumably also saves a great deal of money.
According to PAS, the proposed amendment would allow pension schemes to adopt a one-stage IDRP—for the uninitiated, that is an internal dispute resolution procedure—and if schemes take that route, members may not become aware of the existence of PAS until after the completion of the IDRP. PAS says:
“It is our experience that the resolution of disputes is more effectively done before completion of the IDRP, and often before the procedure has been invoked. We are therefore concerned that the unintended consequence of the amendment as it currently reads would be an increase in unresolved disputes which in turn would increase the level of submissions to the relevant ombudsman services.”
It goes on to discuss its independence and its standing within the industry, in terms of its contribution to dispute resolution.
PAS goes on to say that the management of complaints
“would be made more efficient if a requirement were introduced that all written complaints had to be acknowledged.”
That sounds axiomatic, but perhaps it is not. The PAS also said:
“We would suggest the earlier involvement of TPAS in situations of disputes would have the effect of reducing the number of cases which require the formal deliberations of the IDRP and reduce the number of applications to the Pensions Ombudsman.”
That seemed perfectly sensible, so I tabled the amendment with alacrity. On every Bill Committee that I have ever served on, one Opposition amendment has always been accepted and this amendment, like the golden rivet in a ship, might be it.