Draft specs for simpler annual DC statements

The Department for Work and Pensions (DWP) has published draft rules for 'simpler annual benefit statements' from workplace defined contribution (DC) pension schemes. It is likely that some providers would have to revise their statements to comply with the new length and lay-out specifications.

Qualifying the right to transfer

The Department for Work and Pensions (DWP) has circulated draft legislation intended to block scam pension transfers. It would prevent trustees or managers from carrying out a member’s transfer instructions unless one (at least) of four conditions is met.

‘Pervasive failures’ in DB scheme audit

The Financial Reporting Council (FRC) publicized adverse findings made against an accountancy firm and one of its partners for 'pervasive failures' in several areas of their audit work for a client company. One of the problem areas was the company's liability towards its defined benefit (DB) pension scheme, the audit of which 'in several respects fell far short of what was required.' Most of the issues identified concerned lax scrutiny of the IAS 19 valuation produced by the company's actuarial adviser.

DC charges consultation

The Department for Work and Pensions (DWP) has published details of how it plans to introduce a minimum fund-size condition for charging structures involving flat fees in auto-enrolment default arrangements, with effect from 6 April 2022. However, it also indicates that it is inclined to abolish such combination-charge structures, from a date yet to be determined, so that the only permitted arrangement would be a single, fund- value- based charge based on a percentage of the member's rights.