TPR to list GPPs open to all employers
Tuesday 26 April 2016
The Pensions Regulator (TPR) is to publish a list of group personal pensions (GPPs) open to any employers seeking to comply with their automatic enrolment duties.
TPR believes well-run multi-employer master trusts and GPPs are the best choice for small and micro employers preparing to meet their workplace pension duties.
A list of independently reviewed master trusts which are open to all employers is already available on the employers’ section of TPR’s website.
Now GPP providers which meet similar criteria are being encouraged to apply to appear on a new list on the website, increasing the choice of well-run schemes available.
The criteria for joining the GPP list have been published today.
Executive Director for Regulatory Policy, Andrew Warwick-Thompson, said: "Publishing a list of GPPs in addition to our list of master trusts is the right thing to do. We have always been clear that for the hundreds and thousands of small and micro employers preparing to comply with automatic enrolment, a well-run master trust or a group personal pension is the best choice."
The criteria for GPPs to appear on the new list are intended to mirror, as far as possible, the criteria for master trusts. Crucially, this means that not only must GPPs be open to all employers but that providers will need to confirm that their independent governance committee or governance advisory arrangement has assessed the product on offer. TPR is producing a checklist for providers to use when submitting information.
Andrew Warwick-Thompson added: "We look forward to hearing from GPP providers keen to appear on the new list as we strive to highlight the wide choice of well-run, scalable and sustainable schemes which are available to all employers. I anticipate GPP providers on the list will work hard to make their product as appealing to small and micro employers as possible."
- The full criteria for GPPs to appear on the list are:
- Providers will be regulated by the Financial Conduct Authority (and Prudential Regulation Authority where applicable) for GPP provision.
- Inclusion on the list will be voluntary – providers will have to ask to be listed.
- The provider will confirm that their GPP is open to all employers who wish to use it to comply with their automatic enrolment duties regardless of projected membership numbers or contribution amounts.
- All charges imposed on members in a default fund will be within the charge cap.
- Providers will need to confirm that their independent governance committee (IGC) or governance advisory arrangement (GAA) has assessed the GPP (or relevant GPP product series) under offer.
- Confirmation that the most recent IGC/GAA statement(s) can be easily obtained by employers considering using the GPP.
- Member communications must include clear description of how tax relief is delivered.
- The voluntary master trust assurance framework was developed by the Institute of Chartered Accountants in England and Wales (ICAEW) in association with TPR to support independent reporting accountants in providing independent assurance reports for the trustees of master trusts.
- The Pensions Regulator is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only).
Press contactsMatt Adams 01273 662086
Tim Marks 01273 662092