Maladministration meaning

Original news Mr Y (CAS-57893-P0C6)—20 August 2025 / Ms R (CAS-58612-P1X1)—18 July 2025 Summary The Pensions Ombudsman dismissed a complaint concerning a loan note investment. The scheme’s independent trustee bore no responsibility for losses arising from this high-risk, speculative asset. The complainants had completed forms confirming the trustee was not giving investment advice and could not be held accountable for any investment loss. The arrangement ran on an execution-only basis. The trustee also undertook appropriate due diligence before proceeding. In light of these factors, no liability ultimately attached to the trustee for the loan note loss. The determination highlights the perils of placing funds into non-standard investments. Accordingly, the complaint failed. What were the facts? Ms R and Mr Y were members of the Westerby Pension Scheme (the Scheme). The Scheme was a self-directed, self-invested personal pension (SIPP) scheme. Westerby Trustee Services Limited (Westerby) was the Scheme’s independent trustee and administrator...

Original news Mr R (CAS-54306-K6B1) – 26 October 2024. Summary The Pensions Ombudsman dismissed a complaint concerning a scheme’s delay in crystallising pension benefits during a transfer, which the member argued caused higher-rate tax on future withdrawals and used more of his lifetime allowance than would otherwise have been necessary. Although the delay was held to be maladministration, responsibility for tax liabilities arising from subsequent crystallisation events did not fall on either the transferring or the receiving scheme. In addition, any loss he said he suffered was offset by growth in his fund over the period, which produced a larger tax-free lump sum and, in total, a lower tax bill. This decision is a reminder that a professional will not be accountable for every loss flowing from a breach of duty... What were the facts? ...

Original news: Mr S (CAS-52887–B6H4) – 8 July 2024 Summary The PO has partly upheld a complaint concerning a scheme’s pension transfer due diligence. The complainant first applied to transfer before the Pensions Regulator (TPR) released its Scorpion guidance, then revived his request once that guidance was in force. The scheme ought to have identified several red flags, and its failure amounted to maladministration. Nonetheless, the scheme had sufficiently cautioned about the risks of pension scams, and the complainant would, in any case, have proceeded with the transfer. The PO’s decision underscores the importance of warning members about pension scam risks. What were the facts? Mr S was a member of the City and County of Swansea Pension Fund (the Scheme)...

FORTHCOMING CHANGE : The Pension Schemes Bill, anticipated to obtain Royal Assent in 2026, among other measures, would confer on the Pensions Ombudsman powers mirroring those of a competent court where pension overpayments must be recouped. As a result, trustees would no longer need to seek County Court orders in these matters, thereby cutting legal spend, easing administrative effort and promoting a swifter, more streamlined recovery for schemes and members, and ensuring a more efficient process overall. For more detail, see LNB News 05/06/2025 42 and Pension Schemes Bill—tracker — Pensions Ombudsman and overpayments. This Practice Note reviews the scope of the Pensions Ombudsman to handle occupational and personal pension complaints and disputes under its adjudication function, covering: who may bring or refer complaints/disputes which complaints/disputes fall within or outside its remit the powers he can exercise when determining matters relevant time limits Collectively, these areas define the Ombudsman’s jurisdiction under its adjudication service for both occupational and personal...

Under section 23 of the Local Government Act 1974 (LGA 1974), the office of the Local Government and Social Care Ombudsman (LGO) is established to look into complaints about maladministration and/or service failings involving the following bodies: any local authority, covering its members, officers, and any committee or subcommittee (but not town or parish councils) combined authorities, or a joint board where all constituent bodies are local authorities a development corporation constituted for the purposes of a news town, or an urban development corporation fire and rescue commissioners school admission appeal panels police and crime commissioners a national park authority See Practice Note: Local Government and Social Care Ombudsman. What is Maladministration? Section 26 of the LGA 1974 sets out what the LGO may investigate, but Maladministration itself is not defined in the statute...

The Local Government Act 1974 (LGA 1974) The Local Government Act 1974 (LGA 1974) created a Commissioner for local administration, commonly referred to as the LGO, and that term is used throughout this Practice Note. This Practice Note outlines the LGO’s statutory functions, its jurisdiction—including matters it cannot investigate—together with its powers and procedures. It should be read in conjunction with Practice Notes: Maladministration—complaints and Maladministration—investigations and reports. The LGO’s mission statement is ‘Remedy injustice—help improve local services.’ The LGO’s strategic objectives are to: ensure the service is straightforward to find and simple to use deliver redress for injustice through impartial, rigorous and proportionate investigations apply learning from complaints to help improve local services be accountable to the public and use our resources efficiently The LGO must prepare an annual report on the discharge of its functions in relation to local authorities and present it to those authorities and to parliament. Each local authority receives a tailored report and review...