During late summer, the Pensions Board announced that it will embark on its first ever series of inspections of registered administrators (RAs) of pension schemes. Since 1 November 2008, pension scheme administrators had to register with the Pensions Board to provide the core administration functions of preparing annual reports and annual benefit statements and to maintain sufficient and accurate member records to discharge these two functions. Pension scheme trustees must appoint such a RA. Following initial registration, a RA must keep such registration renewed annually.
In mid-August, the Pensions Board announced that it will “as part of its risk based approach to supervision and pursuant to its powers under the Pensions Act 1990 as amended … shortly carry out a series of both on and off-site inspections on the RA activities of selected RAs listed on the Board’s RA Register.” The Board is to select for inspection a group from a broad spectrum of RAs who provide RA services. Such entities will include life offices, brokers and pensioneer trustees.
The Board has stated that “the RAs selected for inspection will be notified in writing over the coming weeks and provided with information on how and when the inspection will be carried out. In particular, they will be advised of the information to be furnished to the Board in advance of the inspection, together with details of the requisite information to be made available to the inspection team during the on-site inspection.”
The Board has indicated that these inspections will initially focus on reviewing the functions of RAs to check that RAs are correctly discharging their core administration functions as required under the Pensions Act. This will involve reviews of the RA’s maintenance of adequate books and records of scheme members and their entitlements.
The Board plans to publish an overview of its findings from this “initial phase” of inspections on its website together with any general recommendations it may make to RAs to improve their administrative functions.
