Pension scheme trustees have been fined by The Pension Regulator (TPR) for failing to provide chair of trustees’ statements for defined contribution pension schemes.

Pitmans Trustees, a professional trustee firm, and James Hay, a self-invested personal pension (SIPP) provider, have been hit with the maximum fine of £2,000 per scheme after they missed deadlines to provide chairs’ statements.

Numerous other providers including the government’s workplace scheme Nest, Standard Life and Mercer have also been fined for failing to provide compliant statements.  TPR has published a full list of offenders on its website.

Rules introduced by TPR last year, give trustees seven months after schemes’ year ends to publish chairs’ statements.  These are designed to show savers that their pensions are being properly governed and will deliver the retirement benefits they have been promised.

Statements should include information on schemes’ default funds, governance, costs and charges and an assessment of value for money, among other measures.

Commenting on levying the maximum fine on Pitmans Trustees, Nicola Parish, executive director for frontline regulation at TPR, said: “Professional trustees are expected to

 meet a higher standard of care and to demonstrate a greater level of knowledge and understanding than other trustees.”

James Burgoyne, Director – Claims & Technical, Brunel Professions said: “TPR has made it clear that it expects professional trustees to meet high standards and where these standards are not met trustees run the risk of facing claims of negligence from disgruntled scheme members as well as regulatory fines.”

Reports on the recent Pitmans and James Hay cases have been published by FT Adviser.  Other reports have been published by TPR and IPE.

Brunel secures competitive professional indemnity insurance cover for professional trustees and other financial services professionals.  To find out more call Mark Sommariva on 0203 475 3275.