How to Dispute a Pension Decision in the UK
Pension disputes can involve significant sums and complex rules. This guide explains your rights, the complaints process, and how to escalate to the Pensions Ombudsman.
Common pension disputes
- —Incorrect benefit calculation — particularly in defined benefit schemes
- —Delayed pension transfers — transfers must be completed within statutory timeframes
- —Missing employer contributions — your employer may not be paying agreed contributions
- —Refusal to access benefits — on ill-health grounds or at the expected retirement date
- —Survivor or dependant benefit disputes
The Internal Dispute Resolution Procedure (IDRP)
All occupational pension schemes must have an IDRP. You must exhaust it before the Pensions Ombudsman will investigate. Typically two stages: Stage 1 (administrator decision within two months), Stage 2 (trustee review within two months).
Keep all pension statements, employer contribution confirmations, and transfer value quotations. These are essential evidence for any dispute.
The Pensions Ombudsman
Free, independent, and legally binding. The Ombudsman can require the scheme to recalculate benefits, pay interest on delayed payments, pay compensation, and provide a written apology.
The Financial Ombudsman Service
For complaints about personal pension products sold by financial firms, the FOS is the appropriate escalation route. Also relevant for complaints about financial advisers who recommended pension products.
Missing contributions
Report employer non-compliance with workplace pension contributions to The Pensions Regulator at thepensionsregulator.gov.uk. The Regulator has powers to impose financial penalties.
Pension scams
Report immediately to Action Fraud and the FCA. Contact your pension provider to flag the situation. Government regulations make pension cold calling illegal — if you received one, this is evidence of a scam.