In September 2012, tPR launched a consultation on revised codes of practice on reporting late contributions to DC occupational pensions schemes and personal pension schemes. The consultation was triggered by the large number of employers implicated by the auto-enrolment legislation, inviting the risk of late payment reports as employers grabble with their obligations. In June 2013, tPR published its response together with a revised code 5 and code 6.
The revised codes explain to trustees and managers how to meet their obligations to monitor scheme contributions from employers, provide sufficient information to members to check contributions and report material payment failures to tPR within a reasonable timeframe.
However, they are less prescriptive than the draft proposals published last year and do not contain the controversial proposal for providers to report ‘nil returns’ to demonstrate compliance. They also encourage trustees to take a proportionate and risk-based approach. Rather than checking every contribution received, trustees should develop a system for identifying high-risk situations that require further investigation.
Both codes were laid before Parliament on 7 June 2013 and are expected to come into force in September 2013, replacing the existing codes of practice 5 and 6.