TPAS - The Pensions Advisory Service

Disclosure of Information

Members of occupational pension schemes have rights to a wide variety of information.

The current disclosure requirements for occupational pension schemes are contained in regulations issued under the Pension Schemes Act 1993 and Pensions Act 1995, which set out the information to which members are entitled, either automatically or on request.

The main areas of information (the list is not exhaustive) are:

Scheme documents - The trustees must provide a member with certain scheme documents within two months of receiving a written request. Documents include the trust deed and rules, annual accounts, actuarial valuations. The trustees are permitted to make a charge for photocopying and postage.

Basic scheme information - The trustees must provide a member with basic information about the scheme before he joins or, if this not possible, within two months of joining. Basic information includes:

• eligibility conditions;
• retirement ages;
• contribution rates;
• benefit basis; and many others.

Benefit statements - Members of money purchase arrangements should automatically receive a benefit statement every 12 months. Members of final salary schemes however, are not entitled to receive automatic statements. The trustees of both types of scheme must issue a benefit statement within two months of receiving a written request from a member.

Early leavers' rights and options - The trustees must issue a member with his 'rights and options' statement within two months of the member's leaving date. The statement itself must include the option available to member, i.e. a preserved pension, a transfer or a refund. It may not include specific benefit information. If it does not, these can be obtained form the trustees.

Transfer values - The trustees must issue the member with a transfer value within three months of receiving a written request.

Winding up - The Trustees have up to one month after the commencement date to notify a member that the scheme is winding up.

Q & As

What am I entitled to when I join?

New members are entitled automatically to certain "basic information" about the scheme, within two months of joining. This includes information regarding eligibility, member and employer contributions, pension ages, benefits basis, contracting out status and an address for enquiries.

Schemes usually include this information in a member's booklet and meet the disclosure requirements on joining by handing new members a copy of the booklet.

What am I entitled to during my period of membership?

Members of money purchase schemes are entitled to a statement automatically each year detailing the contributions paid in the immediately preceding scheme year, any contributions received which are attributable to contracting-out, values of accrued rights and cash equivalents. A Statutory Money Purchase Illustration must also be included, which will use specified assumptions with the aim of illustrating the likely pension at retirement in today's terms, i.e. adjusted to allow for the effects of inflation.

Members of final salary schemes must be provided on request, within two months, with a statement of accrued benefits, or benefits allowing for service up to normal pension age, based on current salary, and a statement of the benefits payable if the member were to die in service.

What am I entitled to when I leave?

When a member leaves he is entitled to notification of their rights and options within two months. An active member is entitled to details of their rights and options should they leave, within two months of the request.

Do I always have to ask for information?

There is some information which has to be provided automatically, such as the basic information referred to above and details of benefits which have come into payment. There is always a time limit within which information which is available on request must be provided.

What other documents can I ask for?

A member has the right to see or have a copy of (the scheme trustees have the option) the document(s) constituting the scheme. Other documents of which copies can be requested include the annual report, the latest actuarial valuation, the latest minimum funding requirement valuation (where applicable), the schedule of contributions or payments schedule and the latest statement of investment principles.

What documents should I ask for?

This depends on the issues of concern to you, but in general it is useful to obtain the annual report as this will include up to date information on many issues relating to the scheme.