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GLOSSARY

Internal dispute resolution definition

Published by a LexisNexis Pensions expert

What does Internal dispute resolution mean?

Internal dispute resolution (IDR) is a means of dealing with member grievances in connection with their pension scheme with the objective of avoiding external interference.

It was introduced as a legal requirement for occupational pension schemes by the Pensions Act 1995 in April 1997. Scheme trustees are required to operate a (at one time two-stage) system to allow members and others to complain: first (usually) to the scheme manager or administrator; and secondly, if dissatisfied, to the trustees (or perhaps the chairman). Following IDR, a member may submit his claim to TPAS or the Pensions Ombudsman. The Pensions Act 2007 amended the provisions of the Pensions Act 1995 to allow schemes to adopt a single-stage dispute arrangement. It is up to trustees to determine whether they wish to opt for this type of arrangement.

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Internal dispute resolution procedure—what is involved?

THIS PRACTICE NOTE APPLIES IN RELATION TO OCCUPATIONAL PENSION SCHEMESThe legal framework for an occupational pension scheme’s internal dispute resolution procedure (IDRP) is set out in:•sections 50, 50A and 50B of the Pensions Act 1995 (PA 1995), and•the Occupational Pension Schemes (Internal Dispute Resolution Procedure Consequential and Miscellaneous Amendments) Regulations 2008, SI 2008/649The Pensions Regulator’s General Code of Practice also includes a section on dispute resolution procedures.Scope of IDRPPension scheme trustees have a duty to establish, run and manage a scheme’s IDRP. The IDRP enables scheme members, or those with an interest in the scheme, to challenge decisions, acts or omissions relating to their scheme benefits or the pension scheme.Individuals considered to have an interest in the pension scheme include those who have ceased, or claim to have ceased, to be a member or beneficiary of the scheme, or a prospective scheme member. This includes widows, widowers and surviving dependants.Complaints relating to the employer are outside the scope of the IDRP process. Scheme members and those with an interest in...

Pension disputes—avenues available to scheme members

THIS PRACTICE NOTE APPLIES IN RELATION TO OCCUPATIONAL AND PERSONAL PENSION SCHEMESDisputes in relation to a pension schemes can take various forms. Depending on the type of scheme in question and the relevant facts, they can be potentially pursued through a number of different avenues. This Practice Note focuses on disputes that may be brought by aggrieved members in respect of pension rights under occupational or personal pension schemes.Disputes relating to occupational pension schemesAn employee (or former employee) with a complaint relating to their pension rights under a trust-based occupational pension scheme acquired during the course of employment may (depending on the particular facts of their claim) have two principal avenues through which they can pursue their claim:•make a written complaint against their employer—this is possible if the pension claim in question can be shown to relate to contractual rights under their contract of employment•make a written complaint against the scheme trustees (and potentially again, the employer) insofar as the claim can be shown to arise under rights the individual...

Discover our 3 Practice Notes on Internal dispute resolution

Pensions warranties—defined contribution scheme—share purchase agreement

Pensions warranties—defined contribution scheme—share purchase agreement Replace Schedule 4, paragraph 19 of Precedent: Share purchase agreement—pro-buyer—corporate seller—conditional—long form with the following: 1 Pensions 1.1 Except as provided for by the Pension Scheme, the Company is not and has never participated in an arrangement or agreement to provide pensions, annuities, lump sums, gratuities or similar benefits on retirement, long-term ill-health or death, or pursuant to a pension sharing order, in relation to the service or historic service of a present or former employee of the Company or any other person, or for the benefit of that individual’s dependents. 1.2 All benefits under the Pension Scheme are provided on a money purchase basis. No assurance, guarantee or promise has been made to any employee of the Company as to the amount of benefits to be provided under the Pension Scheme. 1.3 Copies of the following documents have been Fairly Disclosed to the Buyer: 1.3.1 the governing documentation of the Pension Scheme including the trust deed and rules and all ancillary and...

Business sale agreement—pensions warranties (where buyer participates in seller’s scheme)

Business sale agreement—pensions warranties (where buyer participates in seller’s scheme) This precedent has been prepared on the basis that the drafter is acting for the buyer The following warranties have been drafted for a transaction where the Buyer: 1 decides to replicate pension benefits for transferring Employees in the same pension scheme by entering a deed of substitution to participate and assume responsibility for the scheme, or 2 agrees to accept a transfer of Employees’ past service benefits from the Seller’s pension scheme to its own scheme. You are strongly advised to involve a pensions specialist at the earliest opportunity. 1 Interpretation and definitions For the purposes of paragraphs 2 to 7 inclusive: [ Employee means [define as necessary either by class or named individuals];] Pension Scheme [s] mean[s] [[insert name(s) of scheme(s)] OR an arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity or similar benefit to be given on retirement, long-term ill-health or death, or pursuant to...

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