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Annual pension benefit statements (DC)

Code in force: 28 March 2024

  1. Governing bodies of certain schemes providing defined contribution (DC) benefits must provide their DC members with annual pension benefit statements1, 2.
  2. When drafting annual pension benefit statements, the governing body should follow the principles set out in general principles for member communications.
  3. The governing body must:
    1. issue the annual pension benefit statement to members within 12 months from:
      • for occupational pension schemes, the end of the scheme year
      • for personal pension schemes, the anniversary of the date the person first joined the scheme (or contributions were credited to them, if later)
    2. detail the contributions credited (before deductions) to the member in the year to which the benefit statement relates
    3. include the value of the member’s benefits under the scheme (as at a date specified by the governing body)
    4. provide the cash equivalent transfer value3, if different from the value above
    5. where required by legislation4, include a statutory money purchase illustration, which is an illustration of how much the member’s pension may be worth at requirement
    6. where required by legislation5, provide details of how the member may obtain information about pooled funds
    7. include the website address where the governing body has published the required information6
  4. Governing bodies of automatic enrolment schemes that only provide DC benefits must ensure the statement is no longer than one double-sided sheet of A4 paper, or the digital equivalent, if the statement is provided electronically (exceptions may apply for statements requested in alternative formats)7. Consider the relevant statutory guidance in the design of their statements.
  5. The governing body should present contributions information to members in an accessible, transparent form, so members are able to check that they are receiving the contributions due. This may include information on:
    1. the contributions received by the scheme after tax relief
    2. the percentage of pensionable pay due for employer and member contributions
    3. pensionable pay information, where held
    4. the dates contributions were due and paid
    5. charges or commission taken before or after payment to the scheme

Glossary and legal references

Automatic enrolment scheme

As defined for the purposes of the Pensions Act 2008.

Contributions

Money paid into the scheme. This may come from members in the form of regular or additional contributions, or from employers.

1Regulation 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations2013 [Regulation 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014]

2Regulation 4 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 [Regulation 4 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014]

3Calculated in accordance with Chapter 1 of Part 4ZA of the Pension Schemes Act 1993. [Calculated in accordance with Part 4ZA of the Pension Schemes (Northern Ireland) Act 1993].

4There are certain exceptions to the requirements to provide this information, see Regulation 17(6) of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013. [There are certain exceptions to the requirements to provide this information see Paragraph 6 of Regulation 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014].

5Paragraph 5A of Schedule 6 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013. [Paragraph 5A of Schedule 6 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014].

6Paragraph 5B of Schedule 6 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013. [Paragraph 5B of Schedule 6 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014].

7Regulation 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations2013 [Regulation 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014]