Changes to the forthcoming DC scheme return video transcript
Hello. I'm Louise Sivyer and I work in the policy department at TPR.
As you'll probably know, all trustee boards of pension schemes have to complete a scheme return, providing us with specific details about their schemes. It's a legal requirement to complete it and it helps us ensure that the details we hold about your scheme are correct and up to date. We also share the information we collect with the Pension Protection Fund and the Pension Tracing Service. It's important to remember that if the scheme return is not completed on time, you could face a fine.
The scheme return we require should not be confused with either the HMRC's Pension Scheme Return or the Declaration of Compliance required for automatic enrolment.
Whether you did a scheme return last year, or it has been more than a year since your last return, there are some changes that you need to be aware of. I'm going to cover the new things you'll need to know about when you come to complete it, and you can also read about the changes on our short checklist, which is published on our website. [www.tpr.gov.uk/dc-scheme-return]
So what are the changes?
The changes are around the new DC governance standards and charge controls introduced in April 2015.
Firstly, if your scheme is required to have a chair of trustees, you'll need to provide their details. This is a legal requirement and schemes that don't provide us with this information may be fined.
You'll also be asked a series of questions to identify whether you're required to prepare a chair's statement, which you'll then need to include as part of your annual report and accounts. The statement sets out how your scheme is meeting the new governance standards and needs to be signed by the chair. If you are required to do so, you'll be asked to declare whether you've prepared the statement. If you've not prepared a statement and you are required to, the trustees of the scheme will be personally liable to pay a mandatory fine of between £500 and £2,000.
Lastly, you'll need to confirm whether your scheme complies with the charge controls, which apply to charges deducted from members' funds invested in certain DC schemes that also qualify for automatic enrolment.
So do all schemes have to do this?
There are exemptions for some schemes and the scheme return asks questions to identify whether the regulations apply to your scheme, but if you are uncertain about whether you need to comply, make sure you take appropriate advice.
If you'd like to find out more about all the new duties brought in by the April 2015 legislation, there is more information on our website. And remember, you can also use our online checklist.