The DC chair's statement—the pension requirements
The DC chair's statement—the pension requirements

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • The DC chair's statement—the pension requirements
  • The legislative and regulatory framework
  • Which schemes must produce a DC chair's statement?
  • Earmarked schemes not exempt
  • What if the scheme provides money purchase benefits only by way of an underpin?
  • What if the scheme is in winding-up?
  • What is the DC chair's statement?
  • Who is responsible for matters covered by the DC chair's statement?
  • When must the DC chair's statement be produced?
  • Timing of the first DC chair's statement
  • More...

CORONAVIRUS (COVID-19) UPDATE: The Pensions Regulator (TPR) has issued guidance on reporting duties and enforcement activity which states that TPR would not review any DC chair’s statements until after 30 September 2020.

For more information on the pensions implications of coronavirus, see Practice Notes: Coronavirus (COVID-19)—the pensions implications for trustees.
FORTHCOMING DEVELOPMENT: In response to a previous consultation on ‘Investment Innovation and Future Consolidation: A Consultation on the Consideration of Illiquid Assets and the Development of Scale in Occupational Defined Contribution Schemes’ (dated February 2019), the DWP issued a further consultation on improving outcomes for DC members in September 2020.

Among other things, the government pans to require all relevant schemes to report on the return on investments of default and member selected funds in the DC chair’s statement.

The proposed changes are to be implemented through the draft Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021, which are expected to come into force on 5 October 2021.

THIS PRACTICE NOTE APPLIES IN RELATION TO OCCUPATIONAL PENSION SCHEMES

The chair of schemes providing money purchase benefits must sign an annual governance statement commonly known as a 'DC chair's statement' (although it is verbosely referred to in legislation as an 'annual statement regarding governance').

The legislative and regulatory framework

The legislative requirement to produce a chair’s statement was

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