Running a pension scheme
Checklist for employers and pension scheme trustees
As an employer, aim to have a good working and consulting relationship
with the trustees of the business' pension scheme.
Summary of respective legal responsibilities:
| |
Employer |
Trustees |
| Appoint trustees - in accordance with trust deed |
yes |
yes |
| Keep trustees informed about administration matters, significant
business matters and plans for the scheme |
yes |
|
| Prepare a record of payments from employers and employees
and keep it up to date |
yes |
|
| Make sure the pension provider receives contributions by the
due date |
yes |
|
| Register occupational schemes and stakeholder schemes with
the pensions regulator |
|
yes |
| Pay the annual general levy to the pensions regulator and,
if eligible, the Pension Protection Fund levies |
|
yes |
| Appoint a scheme auditor for all occupational schemes and
also a scheme actuary for final salary schemes |
|
yes |
| Appoint professional advisers as necessary - custodian, investment
manager, financial adviser, legal adviser |
|
yes |
| Keep scheme assets separate from the business' assets |
yes |
yes |
| Arrange and hold meetings and take records of decisions and
transactions |
|
yes |
| Keep financial and member records |
|
yes |
| Take investment decisions |
|
yes |
| Provide information to members |
yes |
yes |
| Sort out member disputes |
|
yes |
| Obtain annual auditor's statement |
|
yes |
| Approve and file annual report on time |
|
yes |
| Obtain triennial actuarial certificate |
|
yes |
To adhere to good practice principles:
| |
Employer |
Trustees |
| Do: |
| Choose a scheme approved by HM Revenue & Customs for
potential tax breaks (but take advice on the changes due to
the tax regime in April 2006) |
yes |
|
| Consult employee representatives or trade unions about changes |
yes |
|
| Check periodically that a stakeholder scheme is still registered
with the pensions regulator |
yes |
|
| Consult a professional adviser on pension legisation (see
our guide: know your
legal obligations on pensions) |
yes |
|
| Seek guidance on matters you do not understand |
yes |
yes |
| Don't: |
| Give members financial advice - this is a regulated activity
and can only be carried out by an authorised person |
yes |
yes |
| Break the rules on how much employees can pay into or take
out of the scheme |
yes |
yes |
Subjects covered in this guide
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Source - Business Link; Crown Copyright.
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