The Pensions Ombudsman (TPO) has issued a Determination that provides important clarification on trustees’ obligations when handling statutory transfer requests made before the 2021 Transfer Regulations came into force.
The case involved a member of the British Steel Pension Scheme who transferred to a Small Self-Administered Scheme (SSAS) in 2014. The member later alleged that the trustee failed to carry out sufficient due diligence to identify potential scam risks, or communicate the risks to the member, which led to a loss of pension funds. However, TPO did not uphold the complaint.
TPO found that, at the time of the transfer, trustees were not legally required to follow the due diligence guidance set out in the Pensions Regulator’s 2013 Action Pack (“Pensions liberation fraud: The predators stalking pension transfers) or the Scorpion campaign materials. The Ombudsman concluded there was no statutory, regulatory, common law, or equitable duty of care requiring trustees to go beyond the legislative criteria under the Pension Schemes Act 1993.
This Determination offers a clear legal assessment of trustee responsibilities for statutory transfers made between February 2013 and the introduction of the 2021 Transfer Regulations, and may provide some comfort to trustees and providers with similar member complaints. Although the Ombudsman has confirmed that each case will continue to be decided on its own unique facts, it is clear that this decision is likely to influence future TPO decisions with similar circumstances and will likely act as a leading determination.
The Role of Leading Determinations
TPO has experienced a significant increase in demand for its services in recent years. According to the 2024/25 Annual Report, TPO resolved 9,435 pension complaints in 2024/25, a 42% increase from last year. However, new complaints also rose by 39% to 9,610, contributing to the ongoing historical backlog and longer customer wait times despite the Ombudsman’s efforts to improve efficiency.
To tackle these challenges, TPO has implemented a new Operating Model Review (OMR) programme, which includes the use of expedited determinations and a “lead case” approach. Expedited determinations allow TPO to close cases more quickly where the outcome is clear, while the lead case approach enables the Ombudsman to resolve multiple similar complaints by issuing a single, sample determination that sets a precedent for related cases. These developments have enhanced operational efficiency, resulting in a higher case closure rate, which in turn has contributed to reducing the backlog and shortening waiting times for complainants.
TPO’s strategy also involves working closely with the pensions industry to encourage earlier dispute resolution at scheme level, and providing guidance to support better complaint handling.
TPO has further confirmed that decisions and guidance on transfers from personal pension schemes (FCA regulated) and discretionary transfers (in contrast with statutory transfers) are currently under review and are likely to follow in due course.
If you would like to discuss any of the issues raised in this blog, please contact a member of the pensions team or your usual Brodies contact.
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