Defined contribution (DC) pension schemes are required to produce an annual governance statement (the “Chair’s Statement”) in their annual report. We have previously blogged on the question of how detailed a Chair’s Statement needs to be and we looked at a number of cases in which The Pensions Regulator (TPR) had issued fines for non-compliance with the requirements.
Following concern within the industry around how some of the legislative requirements were being applied in practice, the Pensions and Lifetime Savings Association (PLSA), in conjunction with other advisers, published a template Chair’s Statement on 28 May 2020. The template (available from the PLSA website) is based on the requirements of regulation 23 of The Occupational Pension Schemes (Scheme Administration) Regulations 1996 as at 1 February 2020 and is intended to be used in conjunction with TPR’s detailed guidance and quick guide. The PLSA has confirmed that the template has been reviewed, and is supported by, TPR.
Whilst there is no “one size fits all” approach to meeting the statutory requirements, the new template will undoubtedly be helpful for trustees as a guide to help simplify the production and reduce the costs of documenting their governance. The PLSA notes however that individual schemes should continue to give due consideration to their own specific circumstances and added that trustees should continue to consult their own advisers as part of the process.
If you would like to discuss anything raised in this blog, please get in touch with your usual contact at Brodies
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