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Statutory financial statements (DC)

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

Governing bodies of schemes providing DC benefits must provide their DC members with annual benefit statements.SDC1

When drafting annual benefit statements, governing bodies should follow the principles set out in General principles for member communications.

Governing bodies can also find further information on communicating with members in our communicating and reporting guide.

The governing bodies must:

  • issue the annual benefit statement to members within 12 months:
    • for occupational pension schemes, the end of the scheme year; and
    • for personal pension schemes, the anniversary of the date the person first joined the scheme (or contributions were credited to him, if later)
  • detail the contributions credited (before deductions) to the member in the relevant year to which the benefit statement relates
  • include the value of the member’s benefits under the scheme (as at a date specified by the governing body)
  • provide the cash equivalent transfer valueSDC2 if different from the value above
  • where required by legislation,SDC3 include a statutory money purchase illustration, ie an illustration of what the member’s pension may be at retirement
  • where required by legislation,SDC4 provide details of how the member may obtain information about pooled funds
  • include details of where to find information online that governing bodies are required to publishSDC5

Governing bodies should present contributions information to members in an accessible, transparent form so the member is able to check they are receiving the contributions they are due. This may include information on:

  • the contributions received by the scheme after tax relief
  • the percentage of pensionable pay due for employer and member contributions
  • pensionable pay information, where held
  • the dates contributions were due and paid
  • charges or commission taken before or after payment to the scheme

Glossary and legal references

Contributions

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

SDC1Regulation 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013
[Regulation 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014]

SDC2Calculated in accordance with sections 97 and 101I of the Pension Schemes Act 1993 in the case of an occupational pension scheme, or regulations 3 and 4 of the Personal Pension Schemes (Transfer Values) Regulations 1987, in the case of a personal pension scheme.
[Calculated in accordance with Articles 93 and 97I of the Pension Schemes (Northern Ireland) Act 1993 in the case of an occupational pension scheme, or regulations 3 and 4 of the Personal Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1987, in the case of a personal pension scheme.]

SDC3There 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 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.]

SDC4Paragraph 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]

SDC5Paragraph 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]

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