The top three subject areas of closed adjudication pension complaints have remained fairly static over the last two years: retirement benefits, transfers and misquotes/misinformation. Although complaints concerning transfers have gone down, they are still a significant percentage of our complaints.

Our main challenge now is dealing with the increasing number of complaints received within our limited resource. For the last three years, we have seen a sustained increase in demand for our service. This upward trend is expected to continue, with increases of 10% plus expected during 2021/22 and 2022/23.

There are many reasons for the increase in people needing to utilise our service and why this will continue. For example, our customers have increased awareness of their pensions and what it means for them: structural changes in the pensions market; pension freedoms; auto enrolment; and guaranteed minimum pensions (GMP) equalisation. Brexit and the economic disruption caused by the COVID-19 pandemic will also continue to increase pressure on businesses, and on people’s changing financial circumstances.

It can sometimes take time for changes in the pensions landscape and the economy to translate into complaints to The Pensions Ombudsman (TPO), but we are already starting to see some predicted increase.

In response to these challenges, we have reviewed our processes to realise further efficiencies. In 2020, we introduced a new case handling complaints process to further improve our focus on resolving complaints as early as possible, while ensuring our quality service will not be affected.

We have already made significant improvements to the customer journey with our newly developed website and the introduction of Live Chat. These initiatives make it easier for our customers to find the information they need to submit a valid complaint and improve the channels through which they can contact us. This enhanced use of technology will create efficiencies by freeing up staff time to focus on progressing complaints received, driving down customer journey times.

As well as an increase in the volume of complaints, we are also dealing with an increasing number of more complex cases, especially those relating to pensions dishonesty.

The Norton Determination, involving trustee wrongdoing, was a very significant decision during 2020/21. I upheld the applicants’ complaints and joined the Pensions Regulator’s (TPR’s) appointed independent trustee, Dalriada, to the complaint. In my Determination of 23 June 2020, I found that Mr Garner had committed multiple breaches of trust and maladministration. By joining Dalriada as a complainant, I was able to direct that Mr Garner was personally liable to repay the funds, amounting to around £11 million, to the three pension schemes in respect of all the 227 members, not just the 31 complainants.

I directed Dalriada to calculate the amount of the lost funds and Mr Garner was directed to pay that amount, with interest, within 28 days. I also directed Mr Garner to pay each of the 31 applicants £6,000 for the distress and inconvenience caused to them by his maladministration.

Mr Garner is now being prosecuted by TPR for breaching Employer Related Investment Regulations by investing more than 5% of assets from each scheme into his business (Section 40(5) PA 1995).

This case demonstrated an important change in approach for us and one that helps hold to account those responsible for pensions dishonesty. As a result, we are piloting a dedicated unit to deal with these specialist cases. The main aim of the pilot is to recover scheme members’ money, without relying on public funds for repayment. This is an important advance for the industry and I am looking forward to overseeing the positive impact it will have.

Resolving complaints is not the only way we help our customers. Working collaboratively with key strategic partners and our stakeholders remains a priority for us in improving standards in dispute resolution across the pensions industry.

Our focus over the coming year will be to address the feedback from the Stakeholder Satisfaction survey (2020) which includes providing further advice and guidance on our website. Increasing the relevant information will help customers to decide on next steps and help stakeholders resolve complaints without the need for us to be involved.

Regardless of the complaint category, in reality, most complaints are actually about the way in which the administration is conducted, whether it is a transfer, a quote or a benefit payment.

Communication in all its various forms is key to reducing the number of complaints at source. Simple steps can make all the difference: using clear, straightforward language; ensuring disputes are handled promptly with response timescales given; rectifying errors as quickly as possible; and apologising. In the long run, those involved in the pensions industry will save time and money, and it will help to protect the reputation and integrity of trustees, administrators, and those providing services to pension providers.

It is vital for TPO to address the challenges we face, and we will continue to adapt to the changing and challenging world of pensions, refining our processes to improve the customer journey and helping to raise standards in dispute resolution across the industry.