In last February’s newsletter we asked the question “What will TPR's findings on data and record-keeping mean for you?” Adapting Shakespeare’s quote on LOVE for another four letter word that consumes trustees, managers and administrators, we wrote: “DATA may not be a tender thing but, if mismanaged, it too can be rough, rude, boisterous, and prick like a thorn”.

The Pensions Regulator (TPR) echoes the above quote with a very useful example of the importance of good data and good governance in its 2-minute governance safety check and 12-minute governance overview: The message is: “If you don’t use the right amount of time and money for good data, you can expect to pay heavily for it!”

http://www.thepensionsregulator.gov.uk/safe/index.aspx

If you would be interested in an example letter to send to your pension administrators to ask how they are responding to The Pension Regulators guide, then email Sally Tasker.

This month we would like to thank Richard Wilson, Senior Policy Adviser of the NAPF for sharing his views on the new Pension Quality Mark.

When the NAPF launched the Pension Quality Mark (PQM) in September 2009 the aim was to recognise quality DC pension schemes, and the time and resources employers invest in providing pensions. Applicants have to demonstrate that they meet standards on contribution levels, scheme governance and member communications. The award then helps employees to recognise the quality of the pension offered by their employer, increasing engagement and confidence.

All our research had told us there was strong demand from employees and employers for an independent quality standard. Over half (52%) of employees said that an independent quality mark would make them more likely to join the scheme, whilst almost two thirds (63%) of employees with an opinion said it would improve their view of their employer.

So we are pleased that just four months on, over 30 schemes have successfully applied for an award, including Marks and Spencer, Kellogg’s and Volkswagen. This is a really good start in terms of the quantity of awards.

Employers who have gained the award for their scheme have come from a range of sectors including financial services, engineering, manufacturing, transport, retail and technology.

Schemes with a range of different contribution structures and levels have received a PQM award. A number of schemes with age or service-related contributions have made successful applications, and the rules cater for both fixed and flexible matching contributions, as well as salary sacrifice.

The PQM is also designed to be flexible on the way schemes communicate with scheme members, with successful applicants using a variety of face-to-face, phone, paper and online communications

So, if you know of a good DC pension scheme – don’t keep it a secret!

All the details of how to make an application are on the PQM website or if you want to talk to someone before making an application call
020 7601 1705.

Please email Sally Tasker should you wish to contribute to our next issue.

The Pensions Regulator is reviewing the way it assesses the conditions for joining and remaining on its register of independent trustees. On 11 December 2009 it published a consultation document on the proposed new criteria.

The main change proposed by the consultation document is the need for an internal controls report using the Audit and Assurance Faculty (AAF) framework developed by the ICAEW to assess whether an applicant has ‘sound administrative and accounting procedures’. The AAF framework is common practice with many pension administrators.

The consultation closes on 12 March 2010. In the meantime, if you would like to discuss The Pensions Regulator’s document, please contact Sally Tasker to arrange a meeting.

Are you an independent trustee? Are you wondering how to prepare for the new AAF framework? Ash Shaw is launching a free package of resources to guide you through the process. With our experience of AAF 01/06, we will work with you so you can comply with the latest regulations within 6 months. To register your interest, please email Sally Tasker. We are also pleased to extend this offer to people who are not subscribers - just send them an email using the Forward to a Colleague link in the top right corner of the page.

To help us help you more swiftly, please send us a brief description of your situation (or a copy of last year's signed accounts if you are looking for new auditors) to Sally Tasker and let us know when would be a convenient time to call you.

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