Internal dispute resolution Definition

GLOSSARY

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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.

View the related checklists about Internal dispute resolution

Basic scheme information from 6 April 2014—checklist

Basic scheme information from 6 April 2014—checklist THIS CHECKLIST APPLIES TO OCCUPATIONAL PENSION SCHEMES ON AND FROM 6 APRIL 2014 For information on the requirement to provide basic scheme information before 6 April 2014, see Practice Note: Occupational pension schemes—disclosure requirements before 6 April 2014—Basic scheme information (ARCHIVED) and Checklist: Basic scheme information before 6 April 2014—checklist [Archived]. Basic scheme information requirement Under the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013, SI 2013/2734 (the 2013 Disclosure Regulations), trustees of occupational pension schemes must provide basic scheme information to: • prospective members, and • members who have not already received such information within one month of the scheme receiving their jobholder information or, if no such information has been received, within two months of them joining the scheme. Basic scheme information must also be given at the request of any of the following persons: • a member or prospective member • their spouse or civil partner • a scheme beneficiary, or • a recognised trade union (ie a...

International supply of goods—checklist

International supply of goods—checklist This Checklist considers how to identify international contracts for the supply of goods and how international contracts for the supply of goods can create more considerations than the domestic supply of goods. The Checklist then sets out a series of considerations when drafting and entering into international contracts for the supply of goods, including issues such as credit rating, carriage of goods (or shipping), international trade terms (including Incoterms®), payment, trade finance, currency, exchange controls, import and export restrictions, intellectual property, force majeure, insurance, language, product liability, notices, governing law, jurisdiction, and trade with the EU. The Checklist is drafted practically from the perspective of an in-house lawyer. Identifying international contracts Does your business know how to identify an international contract, or even what an international contract is? Knowing how to spot an international contract is important for two reasons: • this will shape your involvement as the in-house lawyer—is this a contract you can advise on or do you need to seek external advice? If...

Internal dispute resolution procedure—what is involved?

STOP PRESS: On 28 March 2024, the Pensions Regulator (TPR)’s new General Code of Practice came into force, through the Pensions Act 2004 (General Code of Practice) (Appointed Day, Amendment and Revocations) Order 2024, SI 2024/431. The General Code merges and updates ten of TPR’s existing codes of practice into a single code made of ‘51 shorter, topic-based modules’. TPR say this new format will make it easier for governing bodies to find TPR’s expectations and certify whether they meet them. The ten codes of practice affected are those relating to reporting breaches of the law, early leavers, late payment of contributions, trustee knowledge and understanding, MNTs/MNDs, internal controls, dispute resolution—reasonable periods, DC governance and public sector governance.Among other things, the General Code of Practice includes a module on trustee remuneration and sets out TPR's expectations on administration and maintaining an effective system of governance (ESOG), as required by the Occupational Pension Schemes (Governance) (Amendment) Regulations 2018, SI 2018/1103 (which implement IORP II). Scheme governing bodies will be expected to...

Pension disputes—avenues available to scheme members

Discover our 36 Practice Notes on Internal dispute resolution

Bulk Transfer Agreement

Bulk Transfer Agreement This Deed of Merger is made on the [insert day] day of [insert date]. Parties 1 [TRUSTEE OF TRANSFERRING SCHEME] (Company No. [ ]) whose registered office is at [address] (the ‘Transferring Trustee’); 2 [PRINCIPAL EMPLOYER OF TRANSFERRING SCHEME] (Company No. [ ]) whose registered office is at [address] (‘Transferring Scheme Employer’); 3 [TRUSTEE OF RECEIVING SCHEME] (Company No. [ ]) whose registered office is at [address] (the ‘Receiving Trustee’); and 4 [PRINCIPAL EMPLOYER OF RECEIVING SCHEME] (Company No. [ ]) whose registered office is at [address] (‘Receiving Scheme Employer’). BACKGROUND (A) The Transferring Trustee is the trustee of the [Name of Transferring Scheme] (the ‘Transferring Scheme’). (B) The Receiving Trustee is the trustee of the [Name of Receiving Scheme] (the ‘Receiving Scheme’). (C) The Receiving Scheme Employer is the Principal Employer of the Receiving Scheme and the Transferring Scheme Employer is the Principal Employer of the Transferring Scheme. (D) Both the Receiving Scheme and the Transferring Scheme are registered...

Share purchase agreement—long form pensions warranties (where target company has a defined benefit (DB) scheme)

Share purchase agreement—long form pensions warranties (where target company has a defined benefit (DB) scheme) This precedent has been prepared on the basis that the drafter is acting for the buyer Drafted on the basis that the target company (the Company) is a subsidiary of the Seller. You are strongly advised to involve a pensions specialist at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 9 inclusive: Employee means a present or former employee, officer or director of the Company [or of any Group Company] [and any other person taking part in the management of the affairs of the Company]; Pension Scheme[s] mean[s] [[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, ill-health, death or change in service status, or pursuant to a pension sharing order, in relation to the service or historic service of an Employee or any other person, or...

Dive into our 7 Precedents related to Internal dispute resolution

The wife of a deceased member has requested information regarding the deceased member's pension from the trustees of a pension scheme in order to support a medical negligence claim, but the wife is neither a current or prospective beneficiary under the scheme. In these circumstances: (i) if the scheme trustees do not disclose the information and the wife complained to the Pensions Ombudsman, would the complaint fall within the remit of the Ombudsman, and (ii) if the complaint does fall within the Pensions Ombudsman’s remit and the complaint is successful, what award could the Ombudsman make?

The wife of a deceased member has requested information regarding the deceased member's pension from the trustees of a pension scheme in order to support a medical negligence claim, but the wife is neither a current or prospective beneficiary under the scheme. In these circumstances: (i) if the scheme trustees do not disclose the information and the wife complained to the Pensions Ombudsman, would the complaint fall within the remit of the Ombudsman, and (ii) if the complaint does fall within the Pensions Ombudsman’s remit and the complaint is successful, what award could the Ombudsman make? It is stated that the wife of the deceased member is neither a current or prospective beneficiary under the pension scheme. However, it is not specified if the occupational pension scheme was contracted-out of the State Earnings Related Pension Scheme (SERPS) or was a contracted-in scheme. For example, since 1978, all occupational pension schemes (and personal pension schemes) which contracted-out of SERPS had to provide for a survivor’s pension for a...

A former member-nominated director (MND) (who has just lost their position as MND) of a corporate trustee would like to challenge the result of the election as they believe one of the newly elected MNDs did not follow the rules of the process. Should the former MND bring a challenge through the scheme’s IDRP process or go straight to the Pensions Regulator?

A former member-nominated director (MND) (who has just lost their position as MND) of a corporate trustee would like to challenge the result of the election as they believe one of the newly elected MNDs did not follow the rules of the process. Should the former MND bring a challenge through the scheme’s IDRP process or go straight to the Pensions Regulator? We have assumed that the pension scheme concerned is a defined benefit scheme and that the former MND is a member of the scheme. Whether the former MND should first challenge the result of the MND election through the pension scheme’s internal dispute resolution procedure or complain directly to the Pensions Regulator depends on the nature and seriousness of the breach. Under section 10 of the Pensions Act 1995, the Pensions Regulator has the power to fine trustees for breach of the statutory requirement to put in place and implement arrangements which provide for at least one-third of the total number of directors of a...

See the 2 Q&As about Internal dispute resolution

Pensions weekly highlights—27 June 2024

This week's edition of Pensions weekly highlights includes a review of key news stories, as well as dates for your diary and trackers.

TPO publishes updated factsheet on signposting its complaints service to scheme members

The Pensions Ombudsman (TPO) has published a revised factsheet with suggested wording that schemes can use to signpost members to its complaint service. The factsheet includes suggested wording for FCA regulated businesses which may be included in a final response, written acceptance or summary resolution communication. It also includes generic wording for inclusion in a final response, written acceptance, summary resolution communication, any other stakeholder resolution process or Internal Dispute Resolution Procedure (IDRP). Finally, the signposting factsheet includes two options, in short form and long form, that schemes may decide to use for their website.

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