The judges on both tribunal cases agreed that penalties for non-compliance were mandatory, the chair's statements were non-compliant with the law and TPR was right to issue the fines.
Nicola Parish, Executive Director for Frontline Regulation at TPR, said:
“Annual chair's statements are an essential way to show pension savers that their scheme is being properly governed and will deliver the retirement benefits they are promised. That’s why it is the law for trustees to produce chair's statements and make sure they contain all of the necessary information…”
“As these cases clearly demonstrate, we are prepared to defend our penalties in court…”
In the case brought by EC2, trustee of Autoenrolment.co.uk, judge David Hunter QC ruled that the chair's statement for 2015/16 was “deficient in five respects”. TPR fined the scheme trustee £2,000 for the breach, which was upheld. The judge said the requirements stated schemes should not simply prepare an annual governance statement, but “prepare a statement containing a considerable amount of clearly specified and detailed information”. Occupational schemes providing money purchase benefits, other than those arising from additional voluntary contributions (AVCs), are required by law to prepare an annual statement, signed by the chair of the trustees, within seven months of the end of each scheme year.
TPR provides detailed guidance about producing a chair's statement, including a quick guide to the chair's statement.
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Recognised overseas pension schemes notification list 17 May 2019
The list of Recognised Overseas Pensions Schemes (ROPS) notifications has been updated.
The list is of schemes that have told HMRC they meet the conditions to be a ROPS and have asked to be included on the list. 22 schemes have been added and 2 have been removed in this update.
An updated list of ROPS notifications is published on the first and 15th day of each month. If this date falls on a weekend or UK public holiday the list will be published on the next working day. Sometimes the list is updated at short notice to temporarily remove schemes while reviews are carried out, for example, where fraudulent activity is suspected.
The requirements to be a ROPS changed from 6 April 2017 - find out about the changes for ROPS requirements.
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Latest Countdown Bulletin published 17 May 2019
The Countdown Bulletins provide important guidance and updates to pension scheme administrators about the end of contracting-out. This issue includes information about the extension of Phase 7 Automation and Scheme Financial Reconciliation (SFR), which has happened in response to concerns raised across the Pensions Industry.
Although contracting-out came to an end in April 2016, schemes are still submitting termination and transfer notices with end dates on or after 6 April 2016.
The National Insurance Services to Pensions Industry (NISPI) countdown bulletins provide additional guidance for pension scheme administrators to enable them to make sure all individuals contracted out pension rights are secured correctly.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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