Pension scheme trustees have been encouraged to ensure they have a good understanding of the principles The Pensions Ombudsman (TPO) will use when assessing complaints, amid concerns that the industry could be set to face a significant increase in complaints.

In a recent webinar, Sackers senior counsel, Arshad Khan, noted that 2023 has already been “quite a year” for TPO, explaining that while investigation processes are returning to normal now, following a cyber security incident, timescales have “definitely been affected”.

“Based on information publicly available, determinations for the first nine months of the year to September appear to show that a large majority of complaints have not been upheld (53.9 per cent) or only partially upheld (14.8 per cent) which is good news for trustees,” he continued.

However, Khan suggested that TPO could be set to face a "significant increase" in complaints as members get to grips with their pensions, admitting that "tricky situations will inevitably arise".

Despite this, he suggested that trustees who have a good understanding of the underlying principles that TPO will use when assessing any complaint will be much better placed to minimise the impact on their scheme.

In particular, Khan warned that transfers, misquotes and death benefit cases are “perennial knotty areas when it comes to complaints”, therefore encouraging trustees to pay close attention to these areas.

He stated: “For transfers, trustees should check carefully when the transfer occurred, whether the member was warned of the risks involved and sent a Scorpion leaflet and whether the transfer was statutory or non-statutory – these factors can all have a big impact on the validity of a complaint.

“For misquotes, trustees are encouraged to refer in the first instance to the helpful factsheet for members issued by TPO in July 2023 which sets out the key principles.

"And for death benefit cases, remember that the ombudsman is not there to decide who should get a benefit but rather to ensure that trustees have followed the right processes.”

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