TPR adds first scheme to GPP list
Monday 20 June 2016
The first group personal pension (GPP) has met The Pensions Regulator’s (TPR) criteria to be included on a list of GPPs open to any employers.
Aviva’s Company Pension is the first GPP to appear on the new list which was announced as open for applications in April.
GPPs added to the list must be open to all employers and meet a number of other criteria, including confirming that their independent governance committee or governance advisory arrangement has assessed the product on offer.
The new list sits on the employer’s section of TPR’s website, alongside a list of master trusts which are open to all employers and have been independently reviewed against the voluntary master trust assurance framework.
AutoEnrolment.co.uk, run by pension platform Smart Pension, has been added to this list having obtained master trust assurance and met the criteria.
TPR believes well-run multi-employer master trusts and GPPs are a good choice for small and micro employers preparing to meet their workplace pension duties.
Executive Director for Automatic Enrolment, Charles Counsell said: "There is a wide choice of well-run, scalable and sustainable schemes which are available to all employers. I expect further GPPs and master trusts to be added to our lists in the coming months.
“We are working closely with interested providers to ensure those that meet the criteria are added to the lists as promptly as possible. We want employers to have information easily to hand to help them to choose a suitable scheme.
“For the hundreds and thousands of small and micro employers preparing to comply with automatic enrolment in the next two years, we believe that a well-run master trust or a group personal pension is a good choice."
- The full criteria for GPPs to appear on TPR’s 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 a 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.
- TPR 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).
Ciara Bridge-Butler 01273 66018
Tim Marks 01273 662092