Pensions Ombudsman publishes corporate plan 2024/25

The Pensions Ombudsman (TPO) has recently released its Corporate Plan for 2024/25 which sets out key priorities aimed at addressing the increasing demand for its services and the challenges that come with it.

TPO is experiencing a notable rise in demand and the complexity of cases is on the rise as well (with 6,923 new complaints in 2023/24 and a forecast of 8,917 for 2024/25). With additional funding from the Department for Work and Pensions (DWP) and some internal efficiencies, the pressure is still mounting — leading to longer waiting times and a backlog of cases that TPO is eager to address.

Key priorities for 2024/25 as set out in the report include:

1. Making process changes to reduce waiting times.
2. Reducing the number of older, complex cases from its historical caseload.
3. Improving signposting and pre-application journey, offering more self-service information to ensue the right complaints reach TPO.
4. Securing long-term funding of the Pensions Dishonesty Unit.
5. Expanding TPO’s specialist knowledge in pensions.
6. Reviewing the current systems to ensure TPO clearly understand what's needed to deliver further efficiencies and meet the expected increase in demand.

This year is set to be transformative for TPO. They’re launching a “root and branch” review of their operating model to identify improvements and better manage existing resources. TPO is eager to pilot new approaches, gather feedback from stakeholders and refine their processes going forward.  Although the root and branch review is underway, there are some insights in the plan including more robust triage over complaints, looking for earlier opportunities in the customer journey to make decisions through short form determinations (said to be akin to a court summary judgment) and working more proactively to identify upcoming issues and utilising lead cases more effectively to inform complaints handling. 

The Corporate Plan also outlines performance against key performance indicators (KPIs) for 2023/24. Noteworthy stats include TPO successfully resolved 99% of general inquiries within four weeks, exceeding their 90% target. However, they fell short of averaging 680 complaint closures per month, achieving only 553.  Further, the target wait time for assessment was 12 months against the target of 5 months, for early resolution was 11 months compared to the target of 5 months and for adjudication 15 months against a target of 12 months.

Whilst TPO acknowledges that some KPI's weren’t met, they're advocating for a sustainable funding model in collaboration with the DWP to address the challenges of increasing volumes and complexities in their caseload.

TPO continues to expect increases in complaints because of the pension freedoms, auto-enrolment and the pension dashboard increasing the options and awareness of individuals of their pension provision.  The publication of the Corporate Plan for 2024/25 is a significant moment for TPO as it seeks to tackle the growing demand for its services. It is crucial for stakeholders — especially pension trustees, administrators and their insurers — to stay informed about how these developments could impact the complaints process and service delivery in the pensions sector.