£2,000 is the highest penalty that the watchdog can issue to pension schemes for failure to comply with its chair statement. The chair’s statement is the paperwork that lays out the actions that defined contribution schemes have taken to comply with various requirements. Some of the key elements it must include are information in relation to the scheme’s default fund and its governance, the costs and charges and the assessment of value for members. Speaking to Pensions Expert, an FCA spokesperson said:
“In considering the FCA Pension Plan’s application to become an authorised master trust, TPR reviewed its 2018 DC governance statement and ruled it contained insufficient detail.
The FCA Pension Plan trustee has apologised to members of the plan, and reviewed systems and processes to ensure all the required information is available to members and the 2019 governance statement (provided in October) was fully compliant.
The plan’s application to become an authorised master trust has been approved.”
TPE ruled that here was crucial detail missing in relation to regular training that trustee boards should have been provided in order to retain their knowledge of the scheme’s governing documentation. The FCA also failed to provide historical information surrounding fund managers’ costs and charges for default and non-default strategies. There was no date provided as to when the FCA’s most recent review of the investment strategy had taken place. The TPR has issued fines of a similar nature in the past. Of note, was the £2,000 charge issued to the government- backed workplace pension scheme, National Employment Savings Trust (NEST) for non-compliance with the chair’s statement requirements.
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Pension schemes newsletter 116 30 January 2020
The latest pension schemes newsletter from HMRC includes updates on relief at source, master trust supervision, the managing pension schemes service, and more.
This newsletter is published by HMRC Pension Schemes Services to update stakeholders on the latest news for pension schemes. Issue 116 includes articles on:
Pension flexibility statistics
• • •
Pension Schemes Online service Managing Pension Schemes service
• Relief at Source - notification of residency status report for 2020 to 2021 • Trust Registration Service
Some interesting statistics are included in the publication that relate to the number of tax repayment claim forms processed for pension flexibility payments.
From 1 October 2019 to 31 December 2019, HMRC processed:
P55 = 5,759 forms P53Z = 3,422 forms P50Z = 1,154 forms
• • •
Total value repaid: £32,191,054
Pension schemes newsletter 116 – January 2020
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Payroll: need to know
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