Since April 2015, the trustees of occupational pension schemes providing defined contribution (DC) benefits have been required to prepare an annual governance statement signed by their Chair. The Pensions Regulator (TPR) expects the Chair’s statement to “…provide a meaningful narrative of how, and the extent to which, the governance requirements have been complied with.”
When the requirement first came into force, the Chair’s statement was required to be published within 7 months of the end of the scheme year falling after July 6, 2015, and it continues to form part of the scheme’s annual report and accounts. Trustees must confirm to TPR on their annual scheme return whether the Chair’s statement has been produced. Trustees not producing a statement are liable to receive a penalty from TPR of between £500 and £2,000 (the maximum fine for this non-compliance). Click here for more.
Location