The Pensions Regulator to issue penalties for poor reporting
04 October 2019
The Pensions Regulator (TPR) has stated that it is to commence a ‘crackdown’ on any pension schemes where trustees are not compiling accurate data and on those who are not performing regular validity checks on that data.
They have contacted circa 1,200 organisations with a polite reminder that they should be performing annual reviews on the data that they hold, or they could potentially face considerable fines, with the maximum penalty encompassing £50,000.
TRP’s executive director of regulatory policy, David Fairs, stated that “accurate record-keeping is vital to good governance and administration” and that “requiring trustees to carry out reviews will force them to look closely at their data.”
TPR state that the accuracy of information held regarding various pension schemes and their members has a direct impact on how correctly pensions are handled and therefore the fundamental success of a scheme relies heavily on holding correct data.
Accurate record-keeping will also be vital for the pensions dashboards so that savers can see exactly what pension savings they have and consider whether they need to put more away for later life.
As a direct response to checking the data they hold, if there are any inconsistencies or inaccurate items, Trustees will be responsible for putting plans into place to remedy the problem. The overall aim of TPR in requesting regimented reporting is to ensure governance and compliancy across all pension schemes.
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