Pensions complaints double this year

There has been a doubling in complaints about pensions made to Pensions Ombudsman this year.

Launching his 2011 annual report yesterday, Paul Kenny said the number of new cases had risen from 584 in the first half of 2011 to 1,171 over the same period this year.

Mr Kenny, who said the type of cases being received had become more complex, has called on the Joan Burton, the social protection minister, to allow more staff to be assigned to his office.

Ms Burton, who attended the launch, said any request for more staff would be looked at very seriously by her department.

In his report, Mr Kenny points out that in 2007, there were four investigators dealing with a caseload of 515 for the entire year, which was less than the 695 cases received by his four investigators for the first quarter of 2012.

“Despite the recent introduction of more streamlined procedures, an increase in the number of investigators is required to enable us to resolve cases in an expeditious manner and to maintain high standards of service delivery.”

Mr Kenny said occupational pension schemes were under severe pressure at the moment and that defined benefit schemes in the private sector appeared to be in “significant difficulties”.

Mr Kenny said more and more complaints about defined benefit schemes appeared to centre on matters arising from the insolvency of those schemes, or issues that have their origins in decisions to wind them up.

He pointed out that defined contribution schemes “have not had it easy” either.

The ombudsman emphasised the need for clear and consistent communication between employers, trustees and scheme members.

He said retirement could be an anxious and stressful time and a time when people needed clear communication and comprehensive information.

Mr Kenny also said that it was essential in these difficult economic times that people had a service of redress that was accessible to them should they experience problems with their occupational pensions.

“In these uncertain times, people are really worried about their long-term financial security.”

Based on the complaints made to his office, it was clear that people did not fully appreciate the inherent risks when they were initially taking out pensions. And, equally, they did not fully appreciate the complexity of the products that they had bought until they started taking the pensions.

Mr Kenny said he spends some of his time clarifying letters and communications sent by pension providers that the recipients simply did not understand.

Mr Kenny has also moved to practice what he preaches in relation to the need for clearer communication by publishing a “plain English” guide for pension complainants.

Material in Braille for the visually impaired has also been published by his office for the first time and a new complaints’ form has also been introduced in both and English and Irish.