The Pensions Regulator has fined the London Borough of Barnet Pension Fund £1,000 for failing to submit its 2016 scheme return.

It is the first public service pension fund that the regulator has issued a fine to, with the fine being issued against the scheme manager.

Scheme managers of public service schemes are expected to complete a scheme return which provides TPR with basic information about a scheme such as number of members and participating employers, contact details and information about its pensions board.

Depending on the nature and size of the scheme, trustees and managers are sent a scheme return notice at least once every three years. TPR needs this information from scheme returns in order to be able to carry out its role effectively.

The regulator issued a scheme return notice to Barnet Council on 9 July 2016, requesting the scheme return be submitted by 12 August. The return was not received and, further communications from TPR not replied to, so the matter was referred to TPR’s Determinations Panel on 24 February 2017.

The penalty notice was issued to London Borough of Barnet, as scheme manager, on 13 April and paid on 9 June. As the scheme return was not submitted a TPR case team is continuing to engage with local authority staff to discuss the scheme’s future governance and administration.

Commenting, TPR executive director of frontline regulation Nicola Parish said: “It is the legal responsibility of trustees and managers to submit a scheme return by the deadline. This is one of the most basic regulatory requirements for trustees and managers and it is vitally important that we have up-to-date information about schemes so we can carry out our role effectively. We are also concerned if it is not submitted, as this may signal further problems within the administration of the scheme.

“Good scheme governance is a key factor to achieving positive outcomes for members. The action we took in this case demonstrates our commitment to this. We have shown that where managers and trustees are failing with their basic duties, including in large public service schemes such as this one, we will use our powers to intervene”

Share Story: