The Pensions Regulator (TPR) has issued new guidance for members who are affected by the McCloud remedy.
Public service pension schemes have a statutory duty to provide active members with information about their benefits during the year, which is usually discharged by issuing an Annual Benefit Statement (ABS).
There are various pieces of legislation which direct how this should be done – including the Public Service Pensions Act 2013, disclosure regulations, and scheme specific rules. As the primary enforcer of all pensions-related matters, TPR has oversight of the process.
As with the new data requirements, the McCloud remedy has introduced new requirements (for most schemes) for communicating with members about their benefits.
Namely, a remediable service statement (RSS) which shows both legacy and reformed benefits for the remedy period. These must be issued to members within 18 months of 1 October 2023, and under HM Treasury direction, must be combined with the ABS, apart from the first time one is issued.
Recent guidance issued by TPR recognises that delivering these documents in parallel will be challenging, particularly over the next two years, and suggests that the information required for both should be viewed holistically.
While TPR is clear that schemes must continue to provide ABS to members by the statutory deadline of 31 August throughout McCloud implementation, and to consider breach recording and reporting if this cannot be achieved, the Regulator has confirmed that it will take a pragmatic approach to reviewing such breaches.
ABS can be complex. To ensure they are easy to understand, TPR states they should be clear, concise, easy to digest and written in plain English, transparent, available online and in print, and direct users to tools to help plan for their pension. Ensuring annual benefit statements are accessible is critical for pension schemes.
That’s why Heywood has developed our video ABS solution in conjunction with our partners Money Alive.
The introduction of video opens an additional communication channel for pension schemes to deliver information to members via an avenue they’re increasingly used to.
This cutting-edge tool provides pension fund members with a dynamic and interactive avenue for accessing their benefit statements through personalised, real-time video content. By offering a clearer insight into their pension benefits, this can lead to members better understanding their pension information in a digestible format, whilst reducing the necessity for inbound inquiries to administration teams.
Video ABS underscores Heywood's dedication to increasing member engagement, improving member experiences, and simplifying administrative processes for pension funds.