COVID-19: TPR reporting duties and enforcement activity

Due to the COVID-19 pandemic the Pensions Regulator has not required certain breaches reports to be made to them up until 30 June 2020. As the COVID-19 situation continues there have been many questions raised about whether this position will be extended by TPR, in a number of areas including the requirement to obtain audited accounts within seven months of the year end date. TPR have clarified that from 1 July 2020, many reporting requirements will resume as normal.

TPR will take a pragmatic approach to late preparation of audited accounts and will accept delays to 30 September 2020. However failure to prepare audited accounts within seven months, is now reportable from 1 July 2020. This will impact many schemes with 31 December 2020 year ends but not schemes with year ends from the end of February 2020 onwards, most commonly 31 March and 5 April year ends.

The legislation on DC chair’s statements does not give TPR any discretion about imposing fines where the trustees have not prepared the chair’s statement (which must be included in the annual report and accounts, but can be prepared and signed off separately) on time and within seven months. However TPR will not review any chair’s statements that it receives until after 30 September 2020.

Other reporting duties that resume are in the following areas:

• Suspended deficit repair contributions, where trustees need to submit a revised recovery plan or report of missed contributions
• Late valuations and recovery plan not agreed
• Delays in transfer quotations and payments
• Master trusts formal reporting.

There will continue to be 150 days to report late payments of contributions (other than deficit repair contributions), where normally TPR require contributions paid 90 days after their due date to be reported to them. This easement will be reviewed at the end of September 2020.

TPR do not expect to take regulatory action if a review of a statement of investment principles is delayed up until 30 September 2020.

In light of the current exceptional events, TPR will be refocusing their supervisory activity, focusing more on near-term risks rather than the standard activities in our supervisory cycle. 

To view TPR’s guidance click here.

Next steps

If you require further assistance in this area please speak to your usual Crowe contact.