Governance in Group Personal Pension Schemes

Guide to key legal and regulatory obligations for employers

Employers are commonly using Group Personal Pension Schemes as a qualifying workplace pension scheme for auto–enrolment purposes. These schemes are contract based arrangements between the provider (insurance company or bank) and the member. The employer is not a party to the arrangement although it will contribute on behalf of the member. Not all employees of course will be members. Whilst these types of arrangements are administered by the provider and require little involvement from the employer, the employer is not entirely free from obligation or responsibility.

Personal Pension Schemes must ensure they do not breach certain restrictions imposed by financial regulation authorities. Although Personal Pension Schemes are contract based arrangements, employers are expected to fulfil many of the functions that a trustee of an occupational pension scheme is required to perform. There is currently little legislation relating to Personal Pension Schemes, with much of the governance being set out in guidance. However, the government has indicated that it will review the position in 2017, and the pension industry is expecting more regulation in this area. The Pensions Regulator has issued guidance for employers who may wish to set up a Management Committee. In this way, employers can play a greater role in ensuring that their provider delivers and operates the Personal Pension Scheme for their employee members in line with current guidance and provides good value for money.

Doyle Clayton has developed a guide to the key legal and regulatory obligations for employers relating to governance issues in Personal Pension Schemes, together with a checklist to assist employers.

Do you need a Management Committee to monitor your provider? Do you know how to set one up? Do you know how to operate such a committee? 

We can help with all of the above. Please contact Andrew Campbell to find out more about how we can help on 020 7329 9090 or email acampbell@doyleclayton.co.uk.