IDRP – the new arrangements
From 6 April 2008, the option of having a simplified single stage internal dispute resolution procedure (IDRP) will become a reality, although trustees can stick with their current two-stage IDRP if they wish. Representing a move away from the prescriptive two-stage IDRP required by the Pensions Act 1995, the amended provisions will leave it largely up to scheme trustees to design a process for dealing with pension disputes which is appropriate for their scheme (provided certain “framework” requirements are met). Transitional provisions will apply, so any “disagreement which is ongoing” before 6 April 2008 should be dealt with under the scheme’s current two-stage IDRP. The final Regulations were laid before Parliament this week and come into force on 6 April. Although the final code of practice has not yet been laid, the Pensions Regulator issued a response to consultation in February 2008 which clarified its intention on reasonable periods.