The Internal Dispute Resolution Procedure (IDRP) was established by the Local Government Pension Scheme (LGPS), to outline a formal process for disagreements.
Understanding the Internal Dispute Resolution Procedure (IDRP)
This procedure includes:
- Regulation 74: How to apply for adjudication of disagreements.
- Regulation 75: Decisions made by the adjudicator.
- Regulation 76: Referring adjudications to the Administering Authority.
- Regulation 77: Decisions by the Administering Authority upon reconsideration.
- Regulation 78: Rights to representation.
- Regulation 79: Appeals by Administering Authorities.
As the administering authority, Avon Pension Fund must have a formal complaints procedure, which is the IDRP. This procedure sets clear responsibilities for both scheme employers and the Fund.
How the IDRP works
The IDRP is designed to resolve disputes regarding LGPS pension decisions where a member disagrees with a decision an employer has made. To make a formal complaint, pension fund members should submit it in writing, to the employer, usually within six months of being informed about the decision they wish to contest. If the complaint is about a missing decision, it should be made within six months of when that decision should have been made.
The IDRP consists of two stages:
Stage 1: Your appointed IDRP Stage 1 Appeals Officer (the adjudicator) reviews the case.
The adjudicator can extend the six-month time limit if necessary. If the adjudicator’s decision differs from the original decision, the employer or administering authority must follow the adjudicator’s ruling.
Stage 2: Avon Pension Fund conducts a further review.
If a member is not satisfied with the adjudicator’s decision, they can ask the administering authority (Avon Pension Fund) to review the complaint again if:
- They are unhappy with the first-stage decision.
- They haven’t received a decision or interim letter within three months of lodging their complaint.
- It has been one month since the adjudicator promised a decision, but none has been received.
This review will be conducted by someone who was not involved in the first stage. Again, the complaint must be submitted in writing, and after review the administering authority will respond in writing with their decision.
If the member is still dissatisfied after this stage, they can take their case to the Pensions Ombudsman within three years of the original decision (or lack of decision).
What you need to do
- Appoint a Stage 1 Appeals Officer to handle appeal cases.
- Ensure timely and proper handling of applications.
Handling disagreements informally
If a member is dissatisfied with a decision we recommend addressing the issue informally first. A meeting with the decision-making body can clarify the reasons behind the decision.
To ensure fairness and transparency, it’s crucial to demonstrate that decisions are consistent with established policies. When members see that decisions follow clear guidelines, they are less likely to feel personally targeted. Keeping thorough records of decisions is essential.
When to use the formal IDRP
If informal attempts to resolve the issue fail, members have the right to initiate the formal IDRP. This process involves a detailed investigation into the decisions made and the methods used.
Importance of record keeping
During the formal appeal process, you will need to provide evidence of how and why initial decisions were made. Therefore, maintaining detailed records of all decisions is vital.
The Pensions Ombudsman
The Pensions Ombudsman can investigate complaints about maladministration or disputes regarding pension decisions. However, members must first go through both stages of the IDRP before the Ombudsman will take action. The Ombudsman can also provide informal assistance during the IDRP process.