Following on from Grace Guy's presentation at the IAPF DC Conference this morning, the Pensions Authority has published an Information Update which can be accessed here. Some of the key points from the update, which were all outlined at the DC Conference, are:
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Pension Benefit Statements
- The Authority will not require a PBS to be prepared with an effective date earlier than 1 January 2023 provided that trustees/registered administrators continue to provide annual benefit statements and (for DC schemes) statements of reasonable projection to active members.
This is welcome and was requested by the IAPF some time ago as the bases on which the differing projections required in the PBS have not been published. The Authority will issue guidance on these by the end of July.
Annual Compliance Statement
- Trustees must prepare the 2022 ACS not later than 31 January 2023. The 2022 ACS form will remain unchanged from the form used for the 2021 ACS.
- Trustees will not be required to submit the 2022 ACS to the Authority in 2023. However, the Authority will carry out sample checks and audits of this obligation as part of its ongoing supervisory activity. Trustees are reminded that a failure to prepare the ACS may amount to an offence liable to a prosecution.
Effectively this means the ACS will operate on the same basis as this year where it has to be prepared but not submitted. The Authority is working on a system so the 2023 ACS will be submitted digitally in 2024.
Interpretation of ‘Regulated Markets’ Requirement
- The impact of the revised definition of ‘regulated markets’ in the Act on the non-EEA investment holdings of schemes is being examined by the Authority. The Authority understands that schemes may decide to defer consequent investment or related decisions until the Authority has concluded its examination.
While there was no timeframe on the Authority’s examination, it does mean that schemes do not need to take any action at this point in time. This is an issue the IAPF Investment Committee has also been considering.
Use of Electronic Communications
- Trustees are permitted to provide information to members or beneficiaries using electronic methods in accordance with section 2(8) of the Act. In doing so, they need to comply with the Electronic Commerce Act 2000 (the ECA).
- The Authority confirms that trustees are responsible for determining how they comply with the ECA requirements and what type of consent is required from members to receive information electronically (i.e. active or passive consent). The Authority’s view is that trustees should have regard to the specific profile and experience of their own scheme membership when deciding what type of consent is most appropriate.
This is an important issue for schemes, particularly when communicating with deferred members. We are aware that many schemes have advice that active consent is not required and are operating on this basis.
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PensionsEurope Annual Conference
Coping with the Changing World
The PensionsEurope online annual conference "Coping with the Changing World", organised in partnership with IPE, will take place on 9 June 2022. Europe is going through serious crises with large impacts on our pension systems. This year’s edition will focus on current challenges faced by pension funds and opportunities to overcome them. The annual conference is free to attend.
To register, please click here.
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