The Pension Ombudsman (TPO) has published its Corporate Plan for 2024-2025, outlining key priorities and strategic goals for the upcoming year. This plan is designed to address the increasing demand for TPO’s services and the associated challenges, including long waiting times and funding pressures.

The new Corporate Plan should be viewed in the context of reform having already been announced by TPO recently, with a blog post from June 2024 emphasising that TPO “will be requiring all complainants to exhaust the [scheme’s internal dispute resolution] process before we will consider investigating a complaint”. We covered this blog here.

Introduction and Strategic Goals

The Corporate Plan for 2024-2025 is introduced by the Pensions Ombudsman, who highlights the ambitious programme of work set out for the year. The plan acknowledges the considerable challenges faced by the organisation, such as a large historical caseload, increasing demand, and recent cyber incidents. The Ombudsman states, “Reducing our waiting times is at the heart of this year’s plan”.

The strategic goals for the year include improving efficiency, reducing waiting times, and enhancing customer experience. The plan emphasizes a shift from an evolutionary to a revolutionary approach. One of the key initiatives is a ‘root and branch’ review of TPO’s Operating Model, aimed at identifying improvements within existing funding, resource, and legislative provisions.

Key Performance Indicators and Resource Allocation

The Corporate Plan outlines its performance against several key performance indicators (KPIs) for 2023-2024, to objectively measure its performance. To note two KPIs in particular:

  1. TPO achieved its aim of 90% of General Enquiries being resolved within four weeks – with the actual figure being 99%.
  2. TPO failed to achieve its aim of averaging 680 complaint closures per month – with the actual figure being 553.

Acknowledging that some KPIs were missed, TPO’s Corporate Plan argues in favour of a sustainable future funding model in collaboration with the Department for Work and Pensions (DWP). To this end, TPO state that they will work with the “DWP to shape future funding proposals that address the challenges we are facing in terms of increasing volumes and complexity, and the ambitious Operating Model review programme that we are taking forward” – emphasising that the new approach must be “more responsive to the changing demands that are being placed on” TPO.

Pensions Dishonesty Unit and Future Funding

The Corporate Plan also includes a commitment to continue the work of the Pensions Dishonesty Unit (PDU) for another year – which is praised in the Corporate Plan for, for example, “directing redress of approximately £19m and affecting 428 members across six pension schemes”. TPO place some emphasis on their efforts to “secure Ministerial approval for funding to” ensure that the PDU can continue to operate.

Conclusion

The publication of the Corporate Plan for 2024-2025 by the Pension Ombudsman is a significant step in ensuring that the Ombudsman can continue to meet its functions effectively. Given the increasing demand for its services and the additional wait times that have come with it, the Corporate Plan’s focus on reducing waiting times and improving efficiency is essential. The proper functioning of the Ombudsman is crucial to the overall health and stability of the pensions industry in the UK, ensuring that pension scheme members receive timely and fair resolutions to their complaints.

A few months ago (3 May), the Pensions Regulator also published their Corporate Plan for 2024/2025 – you can read more about this here.

This article was written by Callum Duckmanton and Clive Pugh.