Pension scheme trustees fined and named for producing non-compliant documents

19 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.