Pensions watchdog is forced to drop fines against fund trustees

BRITAIN’S pensions watchdog has had to drop 74 fines against fund trustees after messing up its enforcement timetable, it has emerged.

The Pensions Regulator (TPR) admitted in an update published this month that the penalties were revoked between April and June this year.

The sanctions were slapped on trustees for producing inadequate reports for members setting out how they are governing savers’ money, including explaining costs and charges.

TPR admitted in its report that it revoked the 74 fines in the period “due to a time delay on our part in explaining to schemes why their statement was not compliant with the regulations”.

The admission comes as an embarrassment for TPR, which has been tightening the disclosure requirements for trustees in a bid to keep savers better informed.

The fines related to chairman’s statements, which explain how trustees’ management of schemes meets TPR standards.

The law requires trustee boards to prepare a chairman’s statement within seven months of the end of a year.

It must fine pension managers if it deems the statement non-compliant, with penalties ranging from £500 to £2,000 and the trustees themselves personally liable.

TPR can request to see these statements at any time, including when investigating a scheme, to ensure standards are up to scratch.

While the chairman is responsible for signing the statement, the trustee board as a whole needs to ensure the standards are met.

TPR has come under increased scrutiny in recent years amid a raft of problems for major pension schemes. Its oversight of funding for Carillion’s pension scheme ahead of the company’s collapse attracted widespread criticism.

The revoked fines were first reported by trade magazine Professional Pensions.

A spokesman for TPR said: “We are fining trustees not just when they do not produce a chair’s statement but also if they produce a chair’s statement that is non-compliant.

“We know there have been concerns about a small number of these fines for non-compliance.”

“We have reviewed certain penalty notices and issued revocations where appropriate to ensure we are consistent and fair. We continue to expect high standards of trustees.”