Pension appeals and Internal Dispute Resolution (IDR)

Internal Dispute Resolution (IDR) procedures provide a process for the resolution of complaints lodged by beneficiaries or potential beneficiaries of a pension scheme. Where an individual completes an IDR procedure and remains dissatisfied with the outcome, they may have further recourse through a pension appeal procedure.

Information on the pension appeal procedures applying in the civil service, and in certain public service pension schemes are summarised below and set out in detail in Circular 16/2020: ‘Internal Dispute Resolution (IDR) procedure for pension appeals in relation to beneficiaries/disputed beneficiaries of pre-existing civil service pension schemes and of certain public service pre-existing pension schemes’.

A pension appeal is a complaint or dispute relating to a decision that impacts an actual or potential pension entitlement that has not otherwise been resolved. All reasonable steps should be taken to resolve complaints at a local level in the first instance. A formal pension appeal is intended to be a final step in the IDR process; it should not be a first resort where a question arises in relation to an individual’s pension benefits.

An appellant may be a beneficiary or disputed/potential beneficiary of a pre-existing public service pension scheme. An appeal may also be made on behalf of a beneficiary by a representative nominated by the member, such as a trade union representative or solicitor.

Any decision directly linked to an individual’s pension scheme terms and/or pension benefits can be appealed. For example, an appeal may relate to the decision to award/not award a pension or as to the amount of a pension awarded, or in relation to the interpretation and application of pension scheme rules in any individual case. The pension appeal process does not cover decisions in relation to other employment terms, such as HR, contract or other retirement-related decisions.

Circular 16/2020 replaces all previous circulars/letters/guidance issued on pension appeals/IDR procedures relating to pre-existing schemes in the:

(i) civil service; and

(ii) public service, where the Minister for Public Expenditure, NDP Delivery and Reform has a role in making the appeal determination.

The procedures set out in that circular may be adopted by, or used to inform the appeal procedures operating in respect of any Public Service pension scheme. However, Circular 16/2020 is directly applicable in respect of the civil service pension schemes only, and those public service pension schemes which specify that the Minister for Public Expenditure, NDP Delivery and Reform is the arbiter of disputes under the scheme.

An appeal or dispute resolution provision is usually set out in the relevant pension scheme rules and/or in the Public Service body’s governing legislation. The Minister for Public Expenditure, NDP Delivery and Reform may only make a determination in respect of pension appeals where the scheme rules and/or legislation give the minister the authority to do so.

In that regard, it is important for each body to establish, based on their pension scheme rules and governing legislation, who the arbiter of disputes is. An appeal provision in the establishing legislation of a body may look like:

“If any dispute arises as to the claim of any person to, or the amount of, any superannuation benefits payable in pursuance of a scheme or schemes under this section, such dispute shall be submitted to the minister who shall refer it to the Minister for Finance*, whose decision shall be final.”

*now the Minister for Public Expenditure, NDP Delivery and Reform, to whom functions transferred under S.9(1)(a)(i) of the Ministers and Secretaries (Amendment) Act 2011.

Appendix 1 of Circular 16/2020 sets out the steps involved in the submission of a pension appeal to the Minister for Public Expenditure, NDP Delivery and Reform. These steps are summarised in the graphic below.

Bodies should note that the pension appeals team can only accept and progress an appeal where the checklist provided in the appendix has been completed and signed by a representative of the referring line department, and where all information necessary to consider the appeal has been submitted.

Timelines for the consideration of an appeal assume all relevant documentation has been received. Voluminous cases or cases involving multiple or particularly complex issues may require additional time to review.

From the time the formal appeal process (Stage 2) commences until a determination has issued, the appellant should receive no communication either in writing or verbally to indicate the possible success or failure of their appeal. This approach is necessary given the quasi-judicial nature of the appeal process.

Should additional information be required in respect of an appeal, the pension appeals team may make contact with the relevant body/department or appellant and update the appellant/relevant body or department as necessary in relation to this. However, this is not to be considered the opening of a dialogue between an appellant and the pension appeals team – the communication is focused on obtaining the information necessary to progress an appeal. To ensure fairness and impartiality of the appeals process, communication outside of this will not be entered into by the pension appeals team.

Should an individual remain dissatisfied with the outcome of a pension appeal, they may be able to pursue a complaint to the FSPO. The FSPO generally requires that an IDR procedure be completed prior to accepting a complaint.

Further information on the role of the FSPO is available at https://www.fspo.ie.

Circular 16/2020 – Internal Dispute Resolution (IDR) procedure for pension appeals in relation to beneficiaries/disputed beneficiaries of pre-existing civil service pension schemes and of certain public service pre-existing pension schemes