Pensions Benefit Statements
Registered Administrator
For the purposes of facilitating the discharge by the trustees of a scheme or trust RAC of their obligations under the regulations, the trustees shall appoint a registered administrator to prepare on their behalf the Pension Benefit Statement. The appointment of a registered administrator does not relieve the trustees) of their obligations under the Regulations.
Where a registered administrator is appointed by the trustees of a scheme or trust RAC the registered administrator shall prepare the Pension Benefit Statement, and provide the Pension Benefit Statement to the trustees not later than one month prior to the date by which the Pension Benefit Statement is to be made available, by law by the trustees of the scheme or trust RAC to the members of the scheme or trust RAC.
Statement
The trustees of a scheme or trust RAC shall cause to be prepared, a concise document, containing key information for each member of the scheme or trust RAC concerned (in these Regulations referred to as “Pension Benefit Statement”).
The title of the Pension Benefit Statement shall contain the words Pension Benefit Statement. he exact date to which the information in the Pension Benefit Statement refers shall be stated prominently in the Pension Benefit Statement.
The trustees of a scheme or trust RAC shall ensure that the information contained in the Pension Benefit Statement is –
- accurate,
- updated,
- written in a clear manner, using clear, succinct and comprehensible language, avoiding the use of jargon and avoiding technical terms where everyday words can be used instead,
- not misleading, and consistency shall be ensured in the vocabulary and content,
- presented in a way that is easy to read,
- available in the English language, and
Where there is any material change to the information contained in the Pension Benefit Statement in comparison to the information contained in the immediately preceding Pension Benefit Statement, the trustees of the scheme or trust RAC concerned shall clearly indicate that material change to the information in that Pension Benefit Statement.
Making Available
The trustees of a scheme or trust RAC shall make available to each member of the scheme or trust RAC concerned a Pension Benefit Statement free of charge through electronic means, including on a durable medium or by means of a website, or on paper, at least annually. They shall make the Pension Benefit Statement available to each member not later than 6 months from the exact date specified in the Statement.
The trustees of a scheme or trust RAC shall, on request by a member of the scheme or trust RAC concerned, provide that member free of charge with a paper copy of the Pension Benefit Statement not later than 4 weeks from the date the request is made.
Information to be provided
The trustees of a scheme or trust RAC shall provide the following key information for members in the Pension Benefit Statement –
- personal details of the member concerned including a clear indication of his or her retirement age,
- the name of the scheme or trust RAC and its contact address and identification of the scheme or trust RAC of the member,
- where applicable, information on full or partial guarantees under the scheme or trust RAC and if relevant, where further information can be found,
- information on pension benefit projections based on the retirement age and a disclaimer that those projections may differ from the final value of the benefits received and, if the pension benefit projections are based on economic scenarios, that information shall also include a best estimate scenario and an unfavourable scenario, taking into consideration the specific nature of the scheme or trust RAC,
- information on the accrued entitlements or accumulated capital taking into consideration the specific nature of the scheme or trust RAC,
- information on the contributions paid by the employer and the member into the scheme or trust RAC, at least over the last 12 months, taking into consideration the specific nature of the scheme or trust RAC,
- a breakdown of the costs deducted by the scheme or trust RAC at least over the last 12 months, and
- information on the funding level of the scheme or trust RAC as a whole.
The trustees may provide additional information to the key information specified.
The Pensions Authority shall set out rules to determine the assumptions of the projections referred to. The trustees shall apply the rules referred to determine, where relevant, the annual rate of nominal investment returns, the annual rate of inflation and the trend of future wages.
Supplementary Information
The Pension Benefit Statement shall specify where and how to obtain supplementary information including:
- further practical information about the member’s options provided under the scheme or trust RAC;
- information relating to the annual reports annual accounts and statement of investment policy principles
- where applicable, information about the assumptions used for amounts expressed in annuities, in particular with respect to the annuity rate, the type of provider and the duration of the annuity; and
- information on the level of benefits, in case of cessation of employment.
In addition to the information referred to above, where members bear investment risk and where an investment option is imposed on the member by a specific rule specified in the scheme or trust RAC, the Pension Benefit Statement shall indicate where additional information is available.
Transitional Provisions
Where a scheme or trust RAC has commenced on or before the coming into operation of this Part, for the purpose of making available the first Pension Benefit Statement after the coming into operation of this Part, the scheme or trust RAC shall, make that Statement available, not later than 31 December 2022.
In the case of a one-member arrangement commenced on or before the coming into operation of the Act, the provisions shall only on and from the expiry of 5 years from the date of such coming into force apply to such one-member arrangements.