The deadline of 31 March for Defined Benefit (DB) and mixed benefit pension scheme returns to be submitted to The Pensions Regulator (TPR) is imminent with some new requirements in place compared with previous years.
According to TPR, the “main change” is the updated asset breakdown, which reflects the findings of a joint consultation with the Pension Protection Fund (PPF) and sees the introduction of a new tier-based system for providing information about a scheme’s assets and changes to asset categories.
Checks will also be made by the regulator to ensure schemes carry out their duties to publish their statement of investment principles (SIPs) and their implementation statements online, and it also urged scheme managers to make sure they responded to the relevant questions regarding environmental, social, and governance (ESG) issues, including climate change.
By the time you read this, it may be that any scheme returns you are responsible for have already been submitted but remember that some deadlines go beyond the end of March, in particular the certification of Deficit Reduction Contributions (DRC), which are due by the end April. This can affect the calculation of risk-based PPF levies for underfunded schemes, so a bit of extra work now may save money when invoices are issued later this year.
It is welcome news (and not entirely surprising) that the PPF has said it will reduce the 2023-24 levy estimate by almost 50% – from £390 million in 2022-23 to £200 million this year – and intends to significantly reduce volatility in levy bills by halving the increase in levy rate when an employer’s insolvency risk band changes.
It is expected that the vast majority (99%) of schemes will receive a lower levy invoice this year.
For further information, call us on 01423 229029 or email catherine@mhmtrustees.co.uk
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