Single Combined Code of Practice
On 1st September 2020, The Pensions Regulator reaffirmed that it aims to make changes to its existing Codes of Practice.
The Regulator intends to combine the content of its 15 current Codes of Practice into a single, integrated and shorter Code. In doing so, it intends to make the important regulatory material quicker to find, use and update; enabling trustees and managers of all types of pension schemes to be more responsive to changes in regulation.
The early focus will be on internal controls, the Defined Contribution Code, public service schemes and master trusts, as this will set out the features of effective governance that will apply to all types of pension schemes.
The Regulator said that trustees will need to demonstrate that they have an effective system of governance within 12 months of publication of the updated code.
We have produced a Spotlight on the implementation of the governance reforms for occupational pension schemes.
Please speak to your usual Capita contact for a copy.
Regulator expectations and COVID-19
The Regulator has updated its COVID-19 guidance, setting out what it expects of pension scheme providers.
At the start of the pandemic in March 2020, The Regulator extended the maximum period defined contribution (DC) pension schemes and trustees had to report late contribution payments from 90 to 150 days, to help with the financial uncertainty.
The updated guidance requires DC schemes and providers to resume reporting late contribution payments no later than 90 days after the due date from 1st January 2021.
This period has been set to give schemes time to adjust their systems and processes and for those employers that have been affected by the pandemic to work with their provider to bring any outstanding contributions up to date.
Other types of enforcement will start to return to normal from 1st October 2020. This includes the requirement for schemes to submit audited accounts and investment statement reviews.
The Regulator will also return to reviewing Chairs’ statements submitted on and after that date as usual. These requirements had been temporarily eased to allow trustees to concentrate on the immediate risks that the pandemic posed for their schemes.
The Regulator has confirmed that it will continue to take a risk-based, proportionate approach to enforcement decisions.
Regulator’s enforcement activity drops by half during COVID-19
The Regulator’s quarterly compliance and enforcement bulletin shows how the temporary flexibilities led to a 55% fall in the use of its powers between April and June this year compared to the previous quarter.
Despite the challenges that COVID-19 introduced, The Regulator said it has not seen a significant or unusual spike in missed pension contributions and the majority of employers continued to meet their auto-enrolment duties.As COVID-19 easements begin to be lifted, The Regulator launched an advertising campaign to remind employers that, while their workplace has changed due to COVID-19, their automatic enrolment responsibilities towards their employees have not.
Fraudster ordered to repay charity pension scheme money
Convicted pension fraudster Patrick McLarry has been ordered to repay more than £250,000 of stolen savings.
McLarry, who spent the money that he stole on a house and warehouse in France, a house in Hampshire and to repay debt, is currently serving a five-year prison sentence for defrauding the Yateley Industries for the Disabled pension scheme.
The Pensions Regulator used the Proceeds of Crime Act 2002 to secure a confiscation order against the former charity chief. The Crown Court has ordered McLarry to pay £286,852 to the Yateley Industries for the Disabled Pension Scheme, to compensate members for the sums he stole adjusted for inflation.
He is required to pay the amount in full within three months. If he fails to do so, the judge has ordered him to serve an additional three years and he will still be required to pay the money back to the scheme.