Maladministration And Pension Schemes

A recent decision by the Pensions Ombudsman suggests that he will hold trustees and, where relevant, professional administrators liable for any losses that result from undue delays, even if they have taken the action required of them within timeframes permitted by statute.

The decision related to a complaint brought by Mrs J M Quest regarding the payment of a transfer value. The scheme administrator had not taken the relevant action within the 6 months provided by statute, and argued that it should only be liable to compensate Mrs Quest in respect of delays beyond that 6 month limit. The Ombudsman took a different view and stated that, where there is maladministration leading to delay, the administrator would be liable for it regardless of whether it was "inside or outside" the statutory time frame.