28th November 2016 Rosalind comments on defined contribution (DC) scheme compliance
A freedom of information request has revealed that there are at least 3,703 private sector DC schemes which are classed as never having completed a scheme return.
Partner Rosalind Connor suggested to Professional Pensions that a part of the explanation for the statistics is a legacy of defined benefit regulation.
She said: “There are a lot of small DC schemes that have not, historically, paid much attention to the regulation of them as occupational pension schemes. Part of the reason is that most of the regulation was aimed at DB, but the tide is turning on this.”
Rosalind added: “There is always a challenge with DC schemes that administration costs may be borne out of the member’s pots. There is an ongoing balancing act between the best administration and limiting costs, and this is sometimes why these issues arise.”
Read the full article in Professional Pensions here.
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