Pensions ombudsman calls for ‘clearer communication’

PENSIONS ombudsman Paul Kenny has called for clearer communication between pension scheme managers and members, in a bid to resolve disagreements more swiftly.

Acknowledging 2011 as “another tough year for pensions and investments”, Mr Kenny said “not every pension-related complaint has to go to determination stage, and early intervention can sometimes help to prevent the escalation of a difficulty”.

“Those managing pension arrangements should ensure that the information they provide to members is clear, correct and can be relied on.

“In addition, it ismost important that pension scheme members take the time to examine the scheme information they are provided with and understand the nature and value of their pension entitlement,” he said.

Mr Kenny went on to say that “good, clear communication” can play a key role, “particularly in helping members to understand the nature of their benefits and in encouraging them to actively engage in its management”.

He said that he encourages the use of early intervention and mediation as a means of resolving disputes that are submitted to him.

In his year-end review, the ombudsman highlighted five cases in which his office ruled in favour of complainants.

These included the case of a former HSE employee whose overtime work was excluded from pension entitlements and the widow of a construction worker who wasn’t receiving the entitled mortality benefit from her husband’s pension scheme, despite him being eligible.