The Pensions Board’s Annual Report for 2012 indicates that the Board will place an increased focus on non-compliance with Pensions Act obligations during 2013 and the Report highlights areas that will receive particular attention.
These areas include:
- Appointment of Registered Administrators
Since 1 November 2008, trustees of a scheme are required to appoint a Registered Administrator to undertake specified core functions (unless they appoint themselves as a Registered Administrator to carry out such functions). The Report highlights that too high a proportion of scheme trustees have not fulfilled this obligation.
- Trustee training
Trustees of a pension scheme (including directors of a company that is a trustee) are required to receive trustee training within six months of their appointment and at least every two years thereafter. The Report notes the Pensions Board’s concern that a minority of trustees (particularly trustees of defined contribution schemes) are not meeting their trustee training obligations.
Trustees should ensure that they are aware of their legal obligations under the Pensions Act and are reminded that non-compliance with these obligations is an offence which can result in an on the spot fine and/or prosecution.