Skip to main content

Your browser is out of date, and unable to use many of the features of this website

Please upgrade your browser.

Ignore

This website requires cookies. Your browser currently has cookies disabled.

Chair's statement

Important

Early draft of the code of practice

This code is not in force yet. It is an early version for the new code of practice consultation.

To give us feedback on issues such as the design, usability and navigation of this code, email us at webfeedback@tpr.gov.uk.

You can also read more information about the consultation.

Published: 17 March 2021

Basic principles of the chair’s statement

The law requires certain governing bodies of DC occupational pension schemes to prepare a chair’s statement within seven months of the end of each scheme year. Compliance with this requirement must be declared on the scheme return sent to us each year. In the chair’s statement, governing bodies must describe and explain how they have met certain legislative governance standards.CH1

We expect governing bodies to ensure the statement is written using the principles set out in General principles for member communications and that it provides clear details about how they comply with governance standards.

The law requires the chair to sign the statement on behalf of the governing body.

Failure to produce a statement signed by the chair that meets the requirements set out in the legislation will result in an automatic penalty of between £500 and £2000,CH2 which the governing body will be personally liable to pay.

As a matter of good practice, governing bodies may wish to document actions as they occur and to hold evidence of any actions described within the statement.

Further details on the information that must be included on the chair’s statement can be found in the chair’s statement section of our communicating and reporting guide.

Making the chair’s statement available

Governing bodies must make the statement available upon request as part of the scheme report and accounts.

Certain parts of the statement must be publicly available, free of charge, on a website.

We have set out below the areas that must be published online. However, in many cases it will be appropriate for governing bodies to publish the statement online in its entirety.

Parts of the statement that must be published online:CH3

  • The statement of investment principles for the default arrangement, and the information set out in the chair’s statement around the review of those arrangements.
  • The level(s) of charges and transaction costs paid by members for each default arrangement and fund that members are able to select.
  • The 'illustrative examples' included in the statement that show the effects of charges and transaction costs on member's accrued rights.
  • Details of any unavailable transaction costs and steps being taken to obtain that information in future.
  • The explanation of the assessment of whether the scheme represents good value for members.

Legal references

CH1Regulation 23 Occupational Pension Schemes (Scheme Administration) Regulations 1996
[Regulation 23 Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997]

CH2Regulation 28(4)(b) Occupational Pension Schemes (Charges and Governance) Regulations 2015
[Regulation 28(4)(b) Occupational Pension Schemes (Charges and Governance) Regulations (Northern Ireland) 2015]

CH3Regulation 29A(2) Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013
[Regulation 29A(2) Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014]