TPO welcomes decision to reinstate it as a competent court
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The Pensions Ombudsman has said it is pleased that the government’s proposed pension schemes bill includes giving TPO the status of ‘competent court’ in cases where trustees need to recover overpaid sums from beneficiaries, after an Appeal Court ruling said only a County Court can enforce recoupments.
In November 2023, the Court of Appeal ruled that TPO was not a ‘competent court’ for concluding overpayment disputes where recoupment is sought. It said while TPO can make determinations and directions in relation to recoupment of overpaid benefits, this needed to be enforced through the county court.
The ruling created an additional hurdle for trustees before they could recover overpayments, and threw into doubt the validity of past recoupments made. Likely to trustees’ relief as much as TPO’s, the King’s Speech on Wednesday announced a pensions bill that will reaffirm TPO as a competent court.
Pensions ombudsman Dominic Harris said: “It is excellent news that the pension schemes bill, announced in the King’s Speech, will include a measure to restore TPO’s status as a ‘competent court.’ The passage of such a bill should make ending outstanding overpayment disputes easier for all those involved, allowing for much faster and less costly resolution.”
Re-establishing the ombudsman’s powers to those of a competent court will reduce costs for courts, schemes and members, according to the government.
Until the bill comes into effect, guidance by TPO on overpayment cases continues to apply.
In November 2023, the Court of Appeal ruled that TPO was not a ‘competent court’ for concluding overpayment disputes where recoupment is sought. It said while TPO can make determinations and directions in relation to recoupment of overpaid benefits, this needed to be enforced through the county court.
The ruling created an additional hurdle for trustees before they could recover overpayments, and threw into doubt the validity of past recoupments made. Likely to trustees’ relief as much as TPO’s, the King’s Speech on Wednesday announced a pensions bill that will reaffirm TPO as a competent court.
Pensions ombudsman Dominic Harris said: “It is excellent news that the pension schemes bill, announced in the King’s Speech, will include a measure to restore TPO’s status as a ‘competent court.’ The passage of such a bill should make ending outstanding overpayment disputes easier for all those involved, allowing for much faster and less costly resolution.”
Re-establishing the ombudsman’s powers to those of a competent court will reduce costs for courts, schemes and members, according to the government.
Until the bill comes into effect, guidance by TPO on overpayment cases continues to apply.
Do you welcome the government’s early move to give TPO ‘competent court’ status?
Photo: kschneider2991/Pixabay
Photo: kschneider2991/Pixabay
