Appropriate pension scheme meaning

Do the requirements for appointing member-nominated trustees (MNTs) or member-nominated directors (MNDs) apply? Verify whether the arrangement is a trust-based occupational pension scheme. Identify whether the scheme is exempt; if it is, document the method used to reach that conclusion. Which of the requirements apply: member-nominated trustees (MNTs) or member-nominated directors (MNDs)? Determine if the trustees are individuals, a corporate entity, or a combination of both. Where trustees are individuals, or a mix of individual and corporate trustees, the MNT requirements apply. If there is a sole corporate trustee, or all trustees are corporate, the MND requirements apply. If a company acts as trustee for more than one scheme to which MND rules apply, decide whether those rules apply to it separately for each scheme, as though the schemes were a single scheme, or a blend of both approaches. The requirements Ensure at least one-third of the trustees are MNTs, or...

This Checklist outlines the principal actions to take when undertaking a bulk transfer of a group of members from one occupational pension scheme to another. Full details of the laws and regulations governing such transfers appear in Practice Note: Bulk transfers between occupational pension schemes—an introduction. Planning of bulk transfer Trustees of both the transferring and receiving schemes should be satisfied that the proposed form of bulk transfer is, in their own judgement, in the interests of their respective beneficiaries. Consider whether the bulk transfer could create adverse tax outcomes for transferring members (eg potential loss of tax protections). Obtain an in principle agreement between trustees and employers of both transferring and receiving schemes to proceed with the bulk transfer exercise. Review the governing provisions of both schemes to confirm that assets, liabilities and members can be transferred, amending them where necessary and feasible...

Original news Mr T (CAS-64304-R5R1)—14 April 2025 Summary The Pensions Ombudsman dismissed a complaint concerning the distribution of death benefits from a pension scheme. It concluded the scheme administrator’s decision was reasonable, neither irrational nor perverse. The complainant was not named in a supposed will—which was invalid as it lacked witnesses—and was the sole beneficiary of the late member’s estate. Before deciding, the administrator carried out extensive enquiries. This outcome serves as a reminder that trustees and administrators of pension schemes should undertake appropriate enquiries when determining death benefit payments. What were the facts? Mr S was a member of the AJ Bell You Invest Self invested Personal Pension Plan (the Scheme). Following his death, he was survived by, among others, Mr T. Mr T had entered into a civil partnership with Mr S...

Original news Mr Y (CAS-57893-P0C6)—20 August 2025 / Ms R (CAS-58612-P1X1)—18 July 2025 Summary The Pensions Ombudsman dismissed a complaint concerning a loan note investment. The scheme’s independent trustee bore no responsibility for losses arising from this high-risk, speculative asset. The complainants had completed forms confirming the trustee was not giving investment advice and could not be held accountable for any investment loss. The arrangement ran on an execution-only basis. The trustee also undertook appropriate due diligence before proceeding. In light of these factors, no liability ultimately attached to the trustee for the loan note loss. The determination highlights the perils of placing funds into non-standard investments. Accordingly, the complaint failed. What were the facts? Ms R and Mr Y were members of the Westerby Pension Scheme (the Scheme). The Scheme was a self-directed, self-invested personal pension (SIPP) scheme. Westerby Trustee Services Limited (Westerby) was the Scheme’s independent trustee and administrator...

Original news Ms Y (CAS-87387-G9Y9)—4 April 2025 Summary The Deputy Pensions Ombudsman has partly upheld a complaint relating to a pension sharing order. There was no obligation on the Scheme to alert the parties to a statutory time limit for implementing a pension sharing order. Nevertheless, the Scheme’s failure to recognise that the divorce was subject to Scots law—which differs from English law in divorce cases—constituted maladministration, and the complainant was awarded compensation for significant distress and inconvenience. This decision highlights the need for pension schemes to have appropriate procedures for any Scottish members. What were the facts? Ms Y’s spouse (Mr Z) was a member of the Friends Provident Pension Scheme (the Scheme). Ms Y and Mr Z divorced and their divorce was governed by Scots law. Under Scots pensions legislation...

Sound administration underpins the smooth operation of a pension scheme and the delivery of good member outcomes, not least because administrators are typically members’ first port of call; consequently, their effectiveness, consistency and accuracy indeed strongly influence member experience and results. In short, administration counts because it is the usual locus of pension governance, safeguarding data accuracy, regulatory compliance and correct member outcomes being delivered on a consistent basis. What is a scheme administrator? For the purposes of this Practice Note, ‘scheme administrator’ means the individual or entity that supports the scheme’s day-to-day running by planning, managing and performing its administrative tasks. This can be an external provider, a dedicated internal team within the employer and/or the employer’s human resources or finance functions and departments. This usage is different from the ‘scheme administrator’ in Part 4 of the Finance Act 2004 (FA 2004), denoting the person or persons who ensure the scheme meets FA 2004 requirements in full. In practice, that statutory capacity is...

This Practice Note concentrates on the matters that applied prior to 6 April 2016—the date on which salary-related contracting-out (often called DB contracting-out) was brought to an end—when buying out these contracted-out salary-related (COSR) entitlements: guaranteed minimum pensions (GMPs)—the benefits built up by COSR scheme members as a result of contracting out between 6 April 1978 and 5 April 1997 Section 9(2B) rights (also referred to as post-1997 COSR rights)—the benefits accrued by COSR scheme members as a result of contracting out between 6 April 1997 and 5 April 2016 The legislative requirements that applied differed according to whether the relevant contracted-out rights were GMPs or Section 9(2B) rights. For guidance on the buy-out considerations from 6 April 2016 for Section 9(2B) rights and GMPs, see Practice Note: Buying out Section 9(2B) rights and GMPs from 6 April 2016. For general issues relating to buy-outs, see Practice Note: De-risking—pension buy-outs and buy-ins. For information on the ending of DB contracting-out on 6 April...

Statutory duty to whistleblow Under the Pensions Act 2004 (PeA 2004, s 70), those connected with pension schemes must notify the Pensions Regulator (TPR) of certain legal breaches where there is reasonable cause to think the matter is likely to be of material significance to TPR. This obligation is widely referred to as the duty to whistleblow. For more detail on the breadth of the obligation, see: Who is required to whistleblow? and What needs be reported?, below. The statutory obligation takes precedence over any inconsistent obligations an individual owes (for example, a confidentiality duty to the scheme’s sponsoring employer). Submitting a report to TPR does not infringe such additional, conflicting or existing (eg confidentiality) obligations. Section 103A of the Employment Rights Act 1996 protects employees who make a report to TPR. The scope and application of the duty feature in TPR’s General Code. TPR has also published guidance (the whistleblowing guidance) to assist trustees in judging whether a breach of law should be reported. This guidance includes illustrative...

Effective from [ insert date ], this statement of investment principles applies. 1 Statement of investment principles 1.1 Purpose of statement This document outlines the principles that steer decisions on investing the assets of the [ insert name ] Pension Scheme (the Scheme). It is published by the Trustees of the [ insert name ] Pension Scheme (the Trustees) to meet the requirements of the Pensions Act 1995, s 35. 1.2 Review The statement will be assessed each year. The Trustees may conduct an ad hoc review at any time if they consider there has been a material change in investment policy, or any other circumstances affecting the Scheme. 1.3 Advice The Trustees have received and evaluated written advice on the contents of this statement in a letter from [ insert name of investment consultant or actuary ]. [ insert name ] have confirmed to the Trustees that, through their ability and practical experience in financial matters, and with appropriate knowledge...

This Agreement is dated [ insert date— note that admission agreements may now commence prior to the execution date and, where appropriate, take effect from an earlier date ]. Parties [ insert full name of Administering Authority ] (the ‘Administering Authority’); [ insert full name of Scheme Employer ] (the ‘Scheme Employer’); [ insert full name of Admission Body ], a company incorporated in England (company registration no. [ insert number ]) with its registered office at [ insert registered company address ] (the ‘Admission Body’). Background [ insert full name of Administering Authority ] acts as the Administering Authority of the [ insert full name of pension scheme ] in accordance with the Regulations as in force. The Scheme Employer is a scheme employer within the meaning given by the Regulations. From the Contract Start Date, the Admission Body shall deliver the Services in relation to the performance of a function of the Scheme Employer...

1 Background 1.1 This policy covers the [ trustees (‘the Trustees’) OR directors of [ insert company name ] (‘the Trustees’), acting in its role as corporate trustee ] of the [ insert name of pension scheme ] (‘the Scheme’). 1.2 Each Trustee has an obligation to act even‑handedly and to advance the aims of the Scheme, while considering the interests of the Scheme’s beneficiaries as a whole. Beneficiaries comprise [ active members, ] pensioners, deferred members, and those asserting rights through them, such as dependants. 1.3 The Trustees may, where appropriate, consider the interests of [ insert name of sponsoring employer ] (the ‘Employer’) as sponsor of the Scheme, so long as this does not cut across their fiduciary obligations to beneficiaries. Legal advice should be obtained if it is necessary to determine whether a distinct fiduciary duty is also owed to the Employer. 1.4 The Trustees acknowledge that, at times, their personal interests or other responsibilities may conflict with—or could reasonably be...