The Pensions Regulator has issued details of additional information which trustees will be required to include in Scheme Return submissions. Trustees are required to complete a Scheme Return only when requested to do so by the Regulator (generally at between one- and three-yearly intervals).
New information which will be required from defined benefit and hybrid schemes includes:
- details of asset-backed contribution arrangements;
- Value-at-Risk (VaR) calculations undertaken by the Scheme Actuary. A VaR is a method of assessing the size and likelihood of potential risks over a defined period of time; and
- financial assumptions used to calculate technical provisions for schemes in surplus.
Trustees of defined contribution schemes will need to provide more details in a number of areas, including:
- a list of current insurers and administrators;
- a detailed breakdown of contributions received from employers, members and transfers-in;
- the name of the chair of the trustees (or if none, a nominated contact for regulatory purposes); and
- confirmation as to whether the scheme is being used for automatic enrolment.
The Regulator has revised its guidance on completing the Scheme Return and published checklists listing the new information requirements. Trustees generally only have six weeks from receiving a Scheme Return request in which to return the completed information and so would be well advised to consider the new requirements even before a request is received (and ensure that, for defined benefit schemes, the Scheme Actuary is aware of the new requirements in good time).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.