The Pensions Regulator

Regulator announces release of online scheme returns for May 2006

Ref: PN06-15
3 May 2006

From the beginning of May, trustees will be able to complete the Pensions Regulator's scheme return forms online. Initially, just under 4000 small defined benefit schemes with two to four members and a small number of larger defined benefit schemes will be using the new electronic forms. This new service will simplify and streamline the scheme return process. In June 2005, the regulator issued 9, 000 paper based scheme returns to DB schemes, and over 7, 000 schemes have already provided detailed scheme information.

The Pensions Regulator keeps a register of pension schemes, holding information about the scheme and the employer. Trustees are required to provide the Pensions Regulator with the information required by law for the register (for example, the address where we can contact each trustee); and notify us of changes to the information.

The Pensions Regulator also has a duty to issue a scheme return to all schemes on the register on a regular basis. The return collects information needed for the register; and requests other information that we reasonably need to carry out our duties as a risk- based regulator. The scheme return process is designed to provide an in-depth information database for the regulator, from which it can build an accurate picture of the schemes it regulates. It will act as a central source of information for the regulator , the department of work and pensions and, where appropriate, the Pension Protection Fund. The Pensions Regulator and the Pension Protection Fund are working closely together on the future development of the scheme return and its processes.

The regulator wishes to remind these schemes that they have a statutory duty to complete the scheme return. Those schemes that ignore the scheme return notice requirements entirely will be in breach of the Pensions Act 2004 and the regulator has the power to issue an improvement notice to trustees that do not comply.

The regulator will be issuing log in details via the scheme return notice. Once you have received it you can log onto the online form at:

https://schemereturns.thepensionsregulator.gov.uk

Editor's notes

• The scheme return is an information gathering tool that collects occupational pension scheme information such as scheme status, type, membership and funding. Trustees are also required to provide details of their involvement in the scheme and to compile information on scheme advisers, administrators and employers.
• Those schemes that ignore the scheme return notice requirements entirely will be in breach of the Pensions Act 2004 and the regulator has the power to issue an improvement notice to trustees that do not comply. An improvement notice is a power the Pensions Regulator can use to encourage compliance. It can prescribe what action needs to be taken and by whom to mitigate any risks caused by breaches of pensions legislation. Failure to comply can result in a financial penalty.
• If trustees wish to confirm their contact address please call the regulator on 0870 606 3636.
• Where a scheme is being registered for the first time the trustees must provide all the information within three months of the scheme being established. For other schemes, however the regulator must be informed of any changes in information as soon as reasonably practicable - this should be within five days or so.
• The Pensions Regulator is the regulator of work-based pensions in the UK, with wider and more flexible powers under the Pensions Act 2004. It replaced Opra which no longer exists.
• The powers of the Pensions Regulator include the ability to:
  • collect more detailed scheme information;
  • issue improvement notices and third party notices, enabling the regulator to ensure problems are put right;
  • freeze a scheme that is at risk, while the regulator investigates; and
  • prohibit trustees who are judged not fit and proper to carry out their duties.
  • The Pensions Act 2004 also imposes a statutory obligation on 'whistleblowers' to report suspected breaches of the legislation to the regulator.