Public-service pension complaints ‘unacceptably high’
Legal costs linked to growing number of appeals to court ‘a large drain on resources’
Minister for Social Protection Joan Burton and Pensions Ombudsman Paul Kenny at the launch of the ombudsman’s annual report in Dublin today. Photograph: Johnny Bambury/MQ Photo
Speaking at the publication of his annual report for 2013, he also said legal costs associated with the increasing tendency to appeal his findings to the courts were placing “ a large drain on the resources” of his office.
“I should point out that a majority of appeals against my determinations have been brought by various arms of the State, from Government departments to semi-State bodies,” said Mr Kenny. He noted elsewhere in his report that the public service accounted for just over 30 per cent of his new caseload in 2013, broadly in line with previous years.
He said appeals to date had been won and costs awarded.
Mr Kenny said the ombudsman’s office had received received 1,884 new enquiries in 2013, down 14 per cent on 2012, and opened 463 new detailed complaint files, a 23 per cent drop on the previous year.
It closed 655 cases – 3 per cent down on 2012 – but reduced the number of cases outstanding at year end by 40 per cent to 222, despite the loss of two “key” members of staff whose posts had not been filled.
Complaints over the calculation of pension benefits were again the most common issue at the heart of the detailed complaint cases.
“What many complaints have in common is a failure of communication,” the ombudsman said. “While the issues involved are often very complex, trustees have a responsibility to set out the information so that the ordinary person can understand it.”
Mr Kenny expressed concern about “lost” pensions, which he said were cropping up more frequently – mostly involving people who had left a job years ago and could not now find their benefits.
He said the pensions industry – which may have thousands of “orphan schemes” (schemes that have not been wound up by companies no longer in business) – had been helpful in trying to track down lost benefits.
He also urged scheme members to take responsibility for their own pension entitlements, including keeping trustees up to date with changes of address.
Despite an “excellent result” for last year, Mr Kenny said he continued to be concerned about the length of time it takes to process a complaint.
Acknowledging pensions complaints were often complex and involved “time-consuming exchanges of information and clarification of documentation”, he said the average time to complete a complaint last year was 113 weeks.
Blaming the recruitment freeze and delays in getting responses to queries, he added: “In that regard, some elements of the public service are less than prompt in dealing with issues which we raise with them.”