People, and bodies such as trustees and employers, can ask the Pensions Ombudsman to decide complaints and disputes relating to the running of pension schemes.

Complaints must be that the party complained against has behaved in a way which constitutes maladministration and that the maladministration has caused injustice. (There is an exception for Trustees, managers and employers - they do not have to allege injustice).

Disputes can be disagreements concerning fact or law. They often arise incidentally to complaints of maladministration and do not usually need a separate investigation. On the website the term "complaint" is generally used to cover both disputes and complaints, unless it is necessary to make a distinction.

Maladministration has been said to involve "bias, neglect, inattention, delay, incompetence, ineptitude, perversity, turpitude, arbitrariness and so on". It is not enough merely to disagree with a decision: the complainant must have reason to believe that the decision was not properly made or implemented.

Injustice does not only mean financial loss - it may include such things as distress, delay or inconvenience.

Who can complain?

The Pensions Ombudsman can investigate complaints from:

1. members or ex-members of occupational pension schemes or personal pension schemes, including stakeholder schemes
2. spouses or dependants of members or ex-members who have died
3. anyone claiming to be a member or ex-member, or the spouse or dependant of one, as long as their complaint is about that claim
4. people entitled to pension credits following the divorce of a scheme member
5. personal representatives appointed on the death of people in categories 1 to 4
6. a suitable person representing the interests of a minor or person unable to act for themselves in one of categories 1 to 4
7. trustees or managers of occupational pension schemes
8. employers in relation to an occupational pension scheme

Who can the complaint be against?

Members and ex-members, or anyone in categories 1 to 6 of the people who can complain, can bring their complaints against:

• all or any of the trustees of the scheme, including past trustees
• the manager of the scheme: for example, in public sector schemes the body that runs the scheme, or for insured schemes, the insurance company
• an employer (but only about the employer's role in relation to the scheme, not general employment matters)
• an administrator of an occupational pension scheme, which means any person or body concerned with the scheme's administration (disputes with administrators are excluded)

Trustees or managers can complain against:

• the trustees or managers of another scheme
• an employer in relation to the scheme

In addition:

• If at least half of them agree, trustees can bring a dispute with other trustees of the same scheme.
• A statutory independent trustee can bring a complaint against or a dispute with other trustees of the same scheme.
• If the trustee is a sole trustee it can refer a question to the Ombudsman concerning its functions.
• Employers in relation to a scheme can complain against the trustees or managers of the scheme.

What kind of pension scheme?

Complaints may concern most kinds of pension scheme other than the State scheme. For the purposes of the Ombudsman's legislation they are divided into two kinds:

• occupational pension schemes which means schemes established by an employer, whether in the public or private sector, and tied to employment with the employer or a connected group of employers
• personal pension schemes being schemes not tied to employment with any particular employer

Scheme members and ex-members (and their spouses and dependants) can complain in relation to either kind of scheme. This includes Stakeholder pension schemes.

Trustees and employers can only complain in relation to occupational pension schemes.

What is excluded?

The Pensions Ombudsman cannot:

• deal with complaints about the way that financial services business is carried out by organisations and people regulated by the Financial Services Authority or bodies approved by it. Generally this means that he will not deal with the way that a pension scheme is sold or marketed.
• deal with complaints about State pensions or other State benefits. Problems with State benefits should be taken up with the Department for Work and Pensions- details are under Helpful bodies on this website.
• investigate a complaint or dispute already subject to court proceedings (an employment tribunal counts as a court) unless the proceedings began after 30 November 2000 and they have been discontinued without a settlement binding on the person referring the matter to the Ombudsman.

Additionally the Ombudsman usually will not investigate matters which are subject to regulation by the Pensions Regulator unless they have completed an investigation or decided not to investigate. There are certain matters regulated by the Pensions Regulator cannot make findings about. Also the Pensions Ombudsman usually will not investigate any complaint that has been, or is being, investigated by any other ombudsman.

Time limits

Complaints and disputes should usually be made in writing to the Pensions Ombudsman within 3 years of the act or omission complained about or disputed. If you did not know about the matter at the time, the 3 years run from the time that you knew or ought to have known.

The Pensions Ombudsman may extend the time limit if the complaint is made outside the 3 year period, but only as long as he thinks that any further delay beyond 3 years is reasonable. In particular he will usually treat time spent using an internal dispute resolution procedure and / or being assisted by the Pensions Advisory Service as a good reason for delaying complaining to him.

However, you should bring your complaint to him as soon as you can. You do not have to assemble all the evidence first, as the Ombudsman will undertake his own investigation and can call for the evidence as part of it.