Complaints to pensions watchdog rise by 70%

AS pension funds across the country continue to fall into arrears, the number of people lodging complaints with the Pensions Ombudsman has increased by more than 70% in the last 12 months.

Pensions Ombudsman Paul Kenny has published provisional figures which show 1,760 new complaints were received by his office in 2009, 71% more than in 2008.

The figure for 2008 was itself 43% higher than the previous year.

Of the complaints received in 2009, most (113) related to calculation of benefits though the biggest increase was in investigations of fund values which more than doubled from 34 in 2008 to 84 last year.

Mr Kenny’s office had started 2009 with 473 investigations from the previous year still unresolved.

“It was imperative to drive efficiency in the complaint handling system or face the prospect of being totally swamped,” he said.

Therefore, the ombudsman’s office put moreemphasis on giving early advice to both sides in a dispute and mediating settlements, rather than letting the dispute develop to a stage where formal investigation and determination was required.

“This approach is now reflected in the 2009 figures which show that almost two out of three of investigations which were completed during the year followed advice and mediation,” he said.

“I am very pleased that this approach has proven so successful. So much so, that despite the significant increase in the number of complaints, we closed 2009 with 16% less investigations on hand than at the beginning of the year.

“This was indeed a very pleasing outcome from the hard work throughout the year.”

Mr Kenny predicted the number of complaints will “level off” this year.

“The massive shocks to the pensions industry and the widespread publicity which resulted meant that people were much more aware of the need to monitor their pension arrangements very carefully.

“The old practice of leaving the pension to look after itself is now well and truly buried and I am very pleased that the level of interest and understanding in the area has grown enormously.

“Vigilance is key,” he said.

* www.pensionombudsman.ie