Ann Abraham, the Parliamentary Ombudsman will conduct an investigation into complaints that workers were misled about occupational pension schemes.

The inquiry will focus on the actions of four government bodies including the Department for Work and Pensions, the Occupational Pensions Regulatory Authority, HM Treasury and the National Insurance Contributions Office.

The grievances have arisen from former workers whose pension funds have dwindled or disappeared because either their schemes were wound up or are in doubt following the insolvency or administration of their employer. A hundred complaints were collected in total.

Despite the £400m set aside by the government to compensate people who have lost their pensions through failed occupational schemes, critics have argued that the fund is inadequate and does not address the scale of the problem.

Abraham will focus on allegations that:

• Government ministers and officials ignored relevant evidence when taking decisions on whether to warn scheme members of the risks to their pensions should their scheme wind up and
• Information and advice provided by Government bodies to scheme members and trustees was inaccurate

The Parliamentary Ombudsman is independent of the Government and Civil Service. It was created in 1967 to investigate complaints from members of the public, referred by MPs, alleging they had suffered injustice through maladministration by government departments or certain public bodies.

Outside of her orders is the power to investigate a third allegation, that legislation affords inadequate protection to scheme members. This is a matter for Parliament. Nor can she look into advice and information provided by the Financial Services Authority when acting in its own right, as such actions are not within her jurisdiction.

If maladministration is the conclusion of the Ombudsman, her aim will be to provide a remedy for the wronged parties.