Pensions - Articles - tPR takes tough stance on revised DC scheme returns

 TPR has begun advising trustees of DC schemes about a number of changes to the scheme return so they can plan in advance. TPR will be sending out revised scheme returns from July this year.

 In a change from last year, schemes are now required to provide information about how they comply with the requirements brought in by legislation in 2015, including charge controls and scheme governance.

 TPR has produced a useful checklist guide for trustees about the new scheme return.

 Andrew Warwick-Thompson, Executive Director of Regulatory Policy at TPR said: “We are supporting trustees in numerous ways including new web guidance and news-by-email to help them understand how to complete the new scheme return in order to demonstrate they are meeting new governance standards. They must now identify the scheme’s chair and confirm that they have completed a chair’s statement.”

 Latest figures show that scheme return completion rates have fallen for the second year running, down 18% from January 2014 to January 2016. TPR is also sending letters to a group of trustees who are in breach of the law to warn them to complete their 2015 scheme return or risk facing a fine.

 Mr Warwick-Thompson added: “We are disappointed and concerned that scheme return completion rates have fallen. We expect full co-operation in this area and for trustees of all schemes to meet their legal duties. We will act where trustees demonstrate that they are not meeting even the basic 'hygiene' duty of completing a scheme return.”