Pensions Ombudsman’s powers

This page gives information regarding the legal powers the Pensions Ombudsman operates under. These Isle of Man Pensions Ombudsman pages provide further information regarding making a complaint about personal and occupational pensions to the Pensions Ombudsman and includes the form to do so.

The Pensions Ombudsman is appointed by the Treasury. The main legislation governing the Pensions Ombudsman is the Pension Schemes Act 1993, Part X (as applied to the Isle of Man).

Under the Act the Pensions Ombudsman has power to deal with complaints of maladministration and disputes of fact or law about personal and occupational pension schemes.

Only the Ombudsman (or any Deputy appointed by the Treasury) can make a final and binding decision on a complaint or dispute.

Regulations made under the Act deal with:

  • The Ombudsman’s powers – the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations 1996 (as applied to the Isle of Man) and

  • The Ombudsman’s procedures – the Personal and Occupational Pension Schemes (Pensions Ombudsman) (Procedure) Rules 1995 (as applied to the Isle of Man)

The main types of complaints and disputes the Ombudsman can investigate are:

  1. Complaints of maladministration made by or on behalf of any actual or potential beneficiary against trustees, managers, employers and/or administrators of occupational or personal pension schemes who alleges that they have sustained injustice in consequence of maladministration and

  2. Disputes of fact or law between an actual or potential beneficiary and trustees, managers, or employers of occupational pension schemes

An occupational pension scheme is set up by a sponsoring employer for the benefit of its employees.

A personal pension scheme is an arrangement set up by an individual with a scheme manager/administrator. A scheme can still be a personal pension scheme even if the employer makes employer contributions to it.

An administrator is defined quite widely in the legislation and includes any person who is concerned in the administration of the scheme. This includes the main administrator, and any person or body responsible for carrying out an individual act of administration of the scheme.

An employer can include a former employer.

There is UK case law which the Isle of Man courts can have regard to, which confirms that complaints can be made against former trustees in relation to the period when they were a trustee. The Pensions Ombudsman can also consider complaints and disputes against former managers and administrators if they were a manager or administrator at the time of the act or omission complained of.

Who is treated as an actual or potential beneficiary for the purposes of bringing a complaint?

The Pensions Ombudsman may be able to consider your complaint if:

  1. You are (or were) a member of the pension scheme

  2. You think you should be a member of the pension scheme or

  3. You are the widow, widower, surviving civil partner or a dependent of a member who has died

A ‘member’ is anyone who has joined a pension scheme and/or is entitled to payments from it now, or the future. This may include people who have the benefit of a pension sharing order.

A complaint can generally be continued by the member’s personal representatives if the member dies.

Other types of complaint the Pensions Ombudsman can investigate

The Pensions Ombudsman may also be able to help with complaints or disputes between:

  1. Trustees (or managers) of different occupational pension schemes

  2. Trustees (or managers) and an employer of the same occupational pension scheme

  3. Independent trustees and other trustees of the same occupational pension scheme

  4. An employer and the trustees (or managers) of the same occupational pension scheme

The Pensions Ombudsman can also look at disputes between trustees of the same trust scheme as long as the dispute is referred by at least half of them.

If you are the sole trustee of an occupational pension scheme, the Pensions Ombudsman can also assist in answering any questions about how the functions of that trustee are carried out.

Complaints about public service schemes

The Pensions Ombudsman can consider complaints of maladministration against or, disputes of fact or law, in connection with the management and administration of Isle of Man public sector pensions schemes.

Before making a complaint about a public sector scheme you should seek to resolve it first directly with the administrator.

Public sector pensions

Pension schemes that are administered by the Public Sector Pensions Authority.

The Pensions Ombudsman will generally expect the internal dispute resolution process to have been completed before accepting a complaint for investigation.

Isle of Man Government Local Superannuation Scheme

This is the main public service scheme which is generally open to people working in local government in the Isle of Man. This scheme is currently administered on behalf of Douglas Borough Council by Capita (not the Public Sector Pensions Authority). Details of this scheme.

The Local Government Superannuation Scheme has its own internal disputes procedure. The Pensions Ombudsman will generally expect you to have gone through the internal disputes procedure before accepting a complaint for investigation.

Can the Pensions Ombudsman consider complaints under the Public Sector Injury Benefit Scheme 2015 and the Public Sector Compensation Scheme 2013?

The Pensions Ombudsman may be able to consider complaints under the Public Sector Injury Benefit Scheme 2015 and the Public Sector Compensation Scheme 2013. These schemes fall within the definition of occupational pension schemes, for the purposes of the Pensions Ombudsman’s jurisdiction if a benefit is paid on termination of employment.

The Pensions Ombudsman generally expects that you will have gone through the internal disputes procedure operated by the Public Sector Pensions Authority first.

Complaints about exercise of other functions by the Public Sector Pensions Authority

The Public Sector Pensions Authority has various statutory functions in relation to Isle of Man public sector pensions in addition to its function as administrator of public sector pensions schemes (e.g. consulting about the merger of two or more public sector pension schemes or on legislative changes to public sector schemes).

The Pensions Ombudsman has no power to investigate complaints about any exercise by the Public Sector Pensions Authority of its wider statutory functions only complaints about maladministration against or disputes of fact or law in connection with the management and administration of a public sector pensions scheme managed or administered by the Public Sector Pensions Authority.

Complaints about non-Isle of Man pension schemes

The Pensions Ombudsman may be able to assist, but has to consider the precise circumstances of the complaint to determine whether we have power to investigate and determine the complaint or dispute.

The Pensions Ombudsman may be able to help if:

  • you are a member of the Isle of Man section of an international scheme. Some international pension schemes are authorised and tax approved in a number of countries including the Isle of Man

  • you are a member of occupational pension schemes based in the United Kingdom and the Republic of Ireland which are recognised by the Isle of Man financial services authority and have Isle of Man members

If a pension scheme has no connection with the Isle of Man the Pensions Ombudsman is not able to investigate the complaint.

If the complaint is about a UK occupational or personal pension scheme we will not be able to deal with it. However, the UK Pensions Ombudsman or the UK Financial Ombudsman service may be able to assist.

Complaints the Pensions Ombudsman cannot help with

  • State Pensions - The Pensions Ombudsman is not able to help with complaints about or requests for information about your State pension or your national insurance contribution record or assist with any complaints about the administration of your State pension. Please follow this link if you have any questions about your State pension

  • complaints or disputes between employers and administrators of personal pension schemes

  • complaints about mis-selling in relation to transfers to a pension scheme and/or financial advice given to members about their investments in the scheme

  • matters which are the subject of proceedings e.g. if legal proceedings have already started in Court or in an employment tribunal

  • complaints or disputes about pure investment products which are not legally a personal or occupational pension scheme

The Financial Services Ombudsman Scheme operated by the Office of Fair Trading can, however (subject to the detailed provisions of the scheme) consider complaints made by individuals against financial services providers (e.g. a financial adviser) operating in or out of the Isle of Man. This may include:

  1. complaints about financial advice given by an Isle of Man authorised financial adviser about a transfer from one pension scheme to another

  2. complaints about financial advice given by an Isle of Man authorised financial adviser to a member on the investments in a pension scheme

  3. some types of complaints about financial service providers operating in or out of the Isle of Man

The Financial Services Ombudsman Scheme will not generally consider complaints about the management of a pension scheme by an Isle of Man authorised manager or administrator. Contact them by phone on +44 1624 686500 or email  ombudsman@iomoft.gov.im.  The Financial Services Ombudsman Scheme may however be able to consider complaints brought by the trustees of a self-directed personal pension scheme against an Isle of Man insurer on a member’s behalf.

If your complaint is about financial advice from a non-Isle of Man pension financial adviser who is not authorised by the financial services authority in the Isle of Man, neither the Financial Services Ombudsman scheme nor the Pensions Ombudsman on the Isle of Man will generally be able to assist. You may be able to take up your complaint with the financial services authority or ombudsman scheme (if any) in the country in which the financial adviser is authorised.

Do I have to be resident in the Isle of Man to make a complaint to the Pensions Ombudsman?

You do not have to be resident in the Isle of Man to bring a complaint to the Pensions Ombudsman in connection with an Isle of Man pension scheme or a pension scheme.

There has to be a sufficient Isle of Man connection to consider the complaint and the complaint can only be considered if you meet the other criteria.

Will the Ombudsman be able to represent me in relation to any complaint?

The Pensions Ombudsman cannot represent you because the Ombudsmen has to determine your complaint acting fairly and impartially.

The Pensions Ombudsman has to investigate the background to the complaint. While the Pensions Ombudsman is not legally obliged to do so the Ombudsmen can, for example, raise additional legal defences which may assist the applicant (e.g. where there is a dispute about whether an overpayment is recoverable) which have not been specifically raised by the applicant.

If you would like to talk to the Pensions Ombudsman about your complaint you can set up a phone appointment by emailing IOM.PensionsOmbudsman@pensions.im