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9.0 Introduction

This section covers:

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contributions payable to the scheme

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Additional Voluntary Contributions

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trustees’ investment powers, and 

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disclosure of delay.


Comment

This section of the Guide sets out and confirms The Pensions Regulator’s expectations of how late payment of contributions should be reported.

Code of practice – reporting late payment of contributions to occupational money purchase schemes and personal pension schemes 

Two codes of practice provide guidelines to trustees, insurers/scheme managers and employers on reporting to The Pensions Regulator and to members the late payment of contributions. In brief:

(i) 

Code 5 – Reporting late payment of contributions to occupational pension schemes – late payments of contributions must be reported to The Pensions Regulator where they are likely to be of material significance to the Regulator in the exercise of its functions. Where this happens, trustees must also report to members. This Code sets out ‘how trustees of defined contribution schemes (and schemes with defined contribution sections) should meet their obligations and duties to
(a) monitor the payment of contributions to be paid under the scheme’s payment schedule
(b) provide the necessary information to enable members to check contributions and
(c) report material payment failures to The Pensions Regulator and to members within a reasonable time.’ [See 9.4.1]

(ii) 

Code 6 – Reporting late payment of contribution to personal pension schemes – this Code applies to trustees and managers of personal pension schemes (including stakeholder schemes and self-invested pension plans (SIPPs)) where direct payment arrangements exist and sets out what constitutes a ‘reasonable period’ within which:
(a) the employer(s) must provide the insurer/manager with information to enable it to monitor the timeliness of the payment of contributions
(b) the insurer/manager must notify The Pensions Regulator where an employer’s failure to provide information prevents them from monitoring payment of contributions, and
(c) the insurer/manager must report late payments of contributions to The Pensions Regulator and to employees where they are likely to be of material significance to the Regulator in the exercise of its functions.

Both Codes provide examples of circumstances in which trustees and managers would be expected to report to The Pensions Regulator and members/employees.













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