- Contraventions of pensions legislation or conduct that are remediable include:
- failure to provide active members with annual benefits statements
- failure to submit a funding valuation under Part 3 of the Pensions Act 2004
- submission of a funding valuation that does not comply with the requirements of Part 3 of the Pensions Act 2004
- We may also seek to improve a scheme’s security or financial position, even where there has been no contravention of any obligations under pensions legislation.
Enforcement approach
- We consider which is likely to be the most effective enforcement tool to achieve the remedy in the specific circumstances of the case. For some breaches of pensions legislation, this could include one or a combination of:
- issuing an improvement notice (as described above)
- issuing a financial penalty (see financial penalties section)
- Some of our powers are focused on improving the financial support for a DB scheme, for example:
- use of our scheme funding powers under s231 of the Pensions Act 2004
- use of our powers to issue a financial support direction under s43 of the Pensions Act 2004
- Appropriate support will help to address the deficit in the scheme and protect member benefits and mitigate risks to the PPF.
- Our view of appropriate support will be reached by considering not just the position of the scheme in the immediacy, but over its expected life, if relevant.
- Other powers which are focused on securing a remedy apply where there is failure to comply with our information-gathering powers. We can issue a fixed penalty notice to encourage compliance and, if the non-compliance continues, we may issue an escalating penalty notice.
- For further or subsequent non-compliance, we may decide to pursue a criminal sanction as a deterrent rather than pursue a remedial outcome with a fixed or escalating penalty notice.