9th December 2009

What's good for the goose......?

Has Christmas come early for IFAs, shock High Court blow for the Pension Ombudsman?

Money Marketing has just reported that the High Court has held that when determining disputes of law, the Pensions Ombudsman cannot take a less restrictive approach to time limits than the courts would take.

This is likely to be a welcome ruling for employers and trustees following recent uncertainty about whether the Pensions Ombudsman can go beyond the normal rules of limitation.

The Ombudsman took the view that Parliament had given him a discretion "capable of indefinitely extending the time within which a complaint may be brought" and referred to the detriment to the member of not being heard on a matter of "far greater financial significance to him than to the employer". He considered the complaint, determining it in the member's favour.

The employer appealed and the High Court upheld the appeal concluding that when the Ombudsman is determining disputes of law, which will include claims for breach of trust, breach of contract and negligence, he cannot take a more liberal approach than the courts.

It will be interesting to see how this ruling will impact upon the FOS exercising it's discretion. Will this decision, at long last, see the dawn of fairness and the observation of the laws set by Parliament and not by Walter Merricks?

Click here to read the article

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