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Pension scheme trustees fined and named for producing non-compliant documents 20 February 2018
Pension schemes that have produced non-compliant chair’s statements have been named for the first time by The Pensions Regulator (TPR).
The chair’s statement is a mandatory statement that trustees of defined contribution (DC) schemes are required to prepare annually, signed by the chair of trustees, within seven months of the end of each scheme year.
Lists have been published which include six pension schemes whose trustees have been fined for producing non- compliant chair’s statements along with the names of the trustees of these schemes. The lists are updated every three months and accompany TPR’s quarterly compliance and enforcement bulletin .
Nicola Parish, TPR’s Executive Director of Frontline Regulation, said:
“What some trustees put together as a chair’s statement is disappointing. These statements are important documents and should demonstrate to scheme members that the trustees are doing a good job and savers’ money is being well looked after. This is not just a tick box exercise. The chair’s statement should make declarations about key aspects of governance, from making sure a scheme’s costs and charges represent good value for money to assessing the skills and knowledge of trustees. A statement with little explanation offers no comfort to pension savers that their money is safe...” TPR has published guidance on how to produce a chair’s statement to support trustees and providers. It sets out the legal requirements in relation to the chair’s statement and our expectations as to how trustees should meet them. TPR is not proposing any new requirements, merely seeking to clarify the expectations already set out in their code and accompanying guidance.
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Pension schemes relief at source for Scottish Income Tax 22 February 2018
As the Scottish income tax rates and thresholds have now been approved by the Scottish Parliament, HMRC’s Pension Schemes Services has published a newsletter on the implications for pension schemes and their members in relation to the Relief at Source mechanism HM Government and HMRC have been working closely with the Scottish Government and with pension scheme administrators to assess the effects of these changes for pension tax relief and to clarify how the mechanisms for providing that relief will operate in respect of Scottish taxpayers. “Net pay Members of pension schemes who get pension tax relief through the ‘net pay’ mechanism have their pension contributions deducted before Income Tax is applied to their pay, so only pay tax on what’s left. Pension tax relief on these contributions will continue to be given by default at members’ marginal rate of tax, including the new and newly increased Scottish rates. Relief at source If you are the administrator of a pension scheme using the relief at source mechanism, you will continue to claim tax relief at the rate of 20% for members who are Scottish taxpayers.
For pension scheme members who are Scottish taxpayers liable to income tax at no more than the Scottish starter rate of 19%, or who pay no tax, current tax rules will continue to apply. This means that scheme administrators will continue
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