Annual Report 2007-08 - the Parliamentary and Health Service ...
Annual Report 2007-08 - the Parliamentary and Health Service ...
Annual Report 2007-08 - the Parliamentary and Health Service ...
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<strong>Parliamentary</strong> <strong>and</strong> health service ombudsman annual report <strong>2007</strong>-<strong>08</strong>Occupational pensionsTrusting in <strong>the</strong> Pensions PromiseAs was reported last year, <strong>the</strong>Ombudsman’s March 2006 report on<strong>the</strong> role of government bodies in <strong>the</strong>security of final salary occupationalpension schemes led to judicial reviewproceedings brought by four complainantswho were unhappy with <strong>the</strong> Government’srejection of <strong>the</strong> findings <strong>and</strong> most of <strong>the</strong>recommendations contained in ourreport. As directed by <strong>the</strong> High Court inits judgment on those proceedings, <strong>the</strong>Secretary of State for Work <strong>and</strong> Pensionsreconsidered <strong>the</strong> Ombudsman’s centralrecommendation – that <strong>the</strong> Governmentconsider whe<strong>the</strong>r it should makearrangements to restore <strong>the</strong> full pensionentitlements of those who had lost allor most of <strong>the</strong>ir pensions when <strong>the</strong>irscheme wound up.As a result, on 17 December <strong>2007</strong> <strong>the</strong>Secretary of State announced that <strong>the</strong>Government had decided to extend<strong>the</strong> scope of <strong>the</strong> Financial AssistanceScheme. The aim of <strong>the</strong> Government’sproposals was to give to all those wholost <strong>the</strong>ir pensions through no fault of<strong>the</strong>ir own, including members of solventemployer schemes, benefits that werebroadly equivalent to those availableunder <strong>the</strong> Pension Protection Fund.These changes both greatly improved<strong>the</strong> compensation available <strong>and</strong> alsoextended it, beyond those membersof insolvent employer schemes whowere within fifteen years of retirement,to all those who have lost <strong>the</strong>ir pension.The relevant legislation to effect <strong>the</strong>sechanges is now in place. We underst<strong>and</strong>that payments are now being made tosome of those previously excluded from<strong>the</strong> Financial Assistance Scheme.The Ombudsman welcomed thisannouncement, which constitutes fullcompliance with <strong>the</strong> key recommendationmade in our report <strong>and</strong> which remedies<strong>the</strong> deficiencies in <strong>the</strong> Financial AssistanceScheme that were also identified in thatreport. The Public Administration SelectCommittee, in its <strong>Annual</strong> <strong>Report</strong>published on 17 January 20<strong>08</strong>, said thatthis ‘represents a real achievement for<strong>the</strong> <strong>Parliamentary</strong> Ombudsman, <strong>the</strong>tireless campaigners, <strong>and</strong> <strong>the</strong> politicalprocess as a whole’.As was also reported last year, aspectsof <strong>the</strong> judgment of <strong>the</strong> High Court in<strong>the</strong> judicial review proceedings were <strong>the</strong>subject of appeal proceedings, in which<strong>the</strong> Ombudsman played an active part.On 7 February 20<strong>08</strong> <strong>the</strong> Court of Appealh<strong>and</strong>ed down its judgment, holding that,while <strong>the</strong> Ombudsman’s findings were notbinding on <strong>the</strong> public bodies within herjurisdiction, <strong>the</strong> relevant body must ei<strong>the</strong>raccept such findings or establish cogentreasons for not doing so.The special relationship between <strong>the</strong>Ombudsman <strong>and</strong> Parliament was alsounderlined within <strong>the</strong> judgment, whichsaid that ‘<strong>the</strong> work of <strong>the</strong> <strong>Parliamentary</strong>Ombudsman generally was both highlyvalued <strong>and</strong> entitled to respect’. Inaddition to assisting Parliament in holding<strong>the</strong> Executive to account, <strong>the</strong> role of <strong>the</strong>Ombudsman was said to be ‘vigorouslyto alert Parliament to an injustice whichhas occurred through maladministration’.25