Pensions - Articles - TPR benefit statement guidance for public service pensions


The Pensions Regulator (TPR) has published guidance for public service pension schemes on producing annual benefit statements over the next two years to reflect the McCloud remedy.

 You must provide relevant members of public service pension schemes with timely annual benefit statements by 31 August each year.

 Over the next two years, scheme managers of public service pension schemes will need to produce annual benefit statements and remedial service statements for members who are affected by the McCloud remedy. The McCloud remedy is the name given to the changes introduced to rectify the age discrimination that was found in the 2015 public service pension schemes reforms.

 Because you may need to send these statements at similar times, it’s important that they are clear and that members don’t receive confusing or misleading information.

 Key points

 You will need to:
 provide annual benefit statements to members of public service pension schemes on time, as well as produce remedial service statements to those members affected by the McCloud remedy
 deliver annual benefit statements and remedial service statements that are accurate, clear and accessible

 If you believe there has been a material breach, due to the late (or non-delivery) of annual benefit statements, then submit a breach of law report to us. See the ‘submitting a report to us’ section on reporting breaches of the law code.

 Communicating with members

 Annual benefit statements can be complex. To ensure they are easy to understand, you should make sure they are:
 clear, concise, easy to digest and written in plain English
 transparent with important information set out clearly
 available online and in print
 accessible in different formats, including large print or audio
 signposting to guides or tools to help with pension planning
 helping members understand by explaining difficult concepts
  
 It may not be possible to provide annual benefit statements with accurate accrued benefit and projection details, as this may conflict with the information in the remedial service statements.

 When considering where conflicting information or confusion could arise, view the information requirements for both statements as a whole. If any conflicts arise, you will need to be clear as to how best to meet the responsibilities of each.

 Duty to report

 Delivery expectations
 We still expect you to provide annual benefit statements to scheme members within the statutory timeframe wherever possible, especially those members whose benefits are unaffected by the McCloud remedy.

 If this hasn’t been possible due to the production of remedial service statements or other related McCloud remedy matters, then we expect those responsible for the scheme’s governance and administration to still consider whether a material breach of the law has occurred. If it has, you should report it to us and record it in the submitted breach of the law report.

 Material breaches
 If you fail to provide scheme members with accurate, complete, or timely annual benefit statements, then we would consider this a material breach of the law.

 Breaches during 2023 to 2025
 We know that meeting all annual benefit statement disclosure requirements due to McCloud remedy issues may be challenging. Because of this, we will take a risk-based, practical approach when reviewing, assessing and responding to annual benefit statement breaches of the law during 2023 to 2025.

 We may ask you for extra information, to gain insight into your plans to rectify the reported breach for the affected delivery year.

 Detailed guidance
 For more information on assessing and reporting breaches of the law see public service code of practice and reporting breaches of the law. 

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.