Schemes warned to comply with law on chair's statements
Trustees must produce a chair's statement which is compliant with the law, The Pensions Regulator (TPR) has warned after fines against two schemes were upheld in court.
In separate cases, trustees failed to include the required information in their annual statement and were issued fines by TPR. Trustees appealed the decisions to the First-Tier Tribunal.
The judges on both tribunal cases agreed that penalties for non-compliance were mandatory, the chair's statements were non-compliant with the law and TPR was right to issue the fines.
Occupational schemes providing money purchase benefits, other than those arising from additional voluntary contributions (AVCs), are required by law to prepare an annual statement, signed by the chair of the trustees, within seven months of the end of each scheme year.
Professional trustees are expected to meet a higher standard of care and to demonstrate a greater level of knowledge and understanding than other trustees.
TPR provides detailed guidance about producing a chair's statement, including a quick guide to the chair's statement (PDF, 71KB, 16 pages).
Further details of these cases can be viewed at the link below.