AEA Pension Scheme

Debate between Lord Harrington of Watford and Lord Vaizey of Didcot

Wednesday 26th October 2016 Westminster Hall

[Richard Harrington]

I really think I should make progress.

As for the pensions ombudsman, which I have some responsibility for and some knowledge about, members of a pension scheme can complain to the pensions ombudsman, who has the power to investigate, and does investigate, public sector pensions schemes as well as private sector schemes.

The pensions ombudsman looks at maladministration —for example, when a trustee or a manager has been given incorrect advice or information. The previous pensions ombudsman investigated a complaint last year concerning the AEA Technology pension scheme. GAD was not a party to that complaint. In the determination, the ombudsman specifically said that he was not ruling on whether the actions of GAD came under his jurisdiction and that no inference should be drawn from his comments about whether it did or did not, or about the likelihood of a successful complaint about GAD.

I understand that the current ombudsman has since considered some AEA complaints and the ombudsman’s office has decided not to investigate. I cannot comment on any particular complaint, but I have been informed that, in accordance with the usual procedures, all the complaints were looked at individually. Many reasons for not investigating the complaint were given, but they did not include that GAD was outside the pensions ombudsman’s remit.

It is possible, of course, to challenge the pensions ombudsman’s decision through the courts by judicial review or by appeal. I would briefly like to mention the Equitable Life case, which has been discussed during the debate. The parliamentary ombudsman did an investigation and asked the Government to expand the jurisdiction for this case alone. She informed us that public sector pensions are beyond her remit, so it seems to me that it is in the pensions ombudsman’s remit. He has looked at these two cases but has said that GAD was not a party. As far as I can see, however, there is nothing to stop people from going to the pensions ombudsman and naming GAD as a party to the case. If they are still not satisfied, there is the system of judicial review in the Court of Appeal, because the pensions ombudsman is a quasi-judicial body. I meet the pensions ombudsman regularly, and I am prepared to bring the subject up straightaway and ask whether he has difficulties within the scope of his existing jurisdiction in dealing with complaints brought to him.

[Mr Vaizey]

Will the Minister give way?

[Richard Harrington]

I am afraid there is not time. I am really sorry, but I only have three minutes left.

The Government have announced their intention to bring forward a draft Bill to create a new public service ombudsman, the focus of which remains the resolution of complaints from individual citizens who claim to have suffered injustice. The response to the consultation said that the ombudsman should operate a “no wrong door” approach, which is referring individuals and possibly transferring their complaints when they fall wholly or partially within the jurisdiction of another body. As for whether GAD should be included in its remit, the Government’s commitment at the moment is that it should take on just the jurisdiction of the parliamentary, health service and local government ombudsmen, but if right hon. and hon. Members believe—as my hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) does—that there will be gaps, the Government are willing to listen to their concerns. After I found out about this debate, I spoke at some length with the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Kingswood (Chris Skidmore), and he would be pleased to meet my right hon. Friend the Member for West Dorset to discuss this and other relevant issues.

I realise, Ms Dorries, that you are about to tell me that my time is up. I am sorry that I do not have more time to go into details, but I hope that I have given some indication of the Government’s thinking.