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The Finance Act 2004 introduced the role of “Scheme Administrator” in connection with the operation of UK pension schemes, ultimately the Scheme Administrator is the professional Trustee of your pension scheme. Taylor Patterson performs the administration duties for you, ensuring the task is carried out in line with necessary pension regulations. This role must be carried out in addition to the usual day to day administration of a pension scheme.
The role of a Pension Administrator is quite complex and the potential fines can be devastating if the role is not performed correctly.
The Administrator first and foremost, must be registered with the “Pension Schemes Online” section of the HMRC website, and be capable of filing reports and making payments electronically. The Administrator must also ensure the pension scheme complies with the Pensions Regulator Code of Practice including maintaining a risk register, business continuity plan and a data protection policy.
Taylor Patterson provides Scheme Administrator duties to all of its UK pension scheme clients. Day to day the administrator is responsible for;
HMRC issued a change to legislation on 1st September 2014, to combat pension liberation activity. This new legislation entitles HMRC to refuse to register, or to de-register a scheme where the scheme administrator is not deemed a fit and proper person.
Fines and Penalties
There’s a range of fines and penalties which can be imposed on the Pension Scheme Administrator for not performing the above duties correctly. Serious breaches of HMRC regulations, or if the Administrator is deemed not fit and proper can lead to fines of up to 40% of the pension value, complete withdrawal of the pension scheme’s registered status and /or the fund becoming fully taxable. It’s important you are confident that your pension scheme is being handled effectively.
These fines and penalties are payable from the pension fund or by you unless they are imposed as a result of the Administrator acting either negligently or fraudulently.
If you have any concerns or would like to discuss the role of the Taylor Patterson Pension Scheme Administrator, please call Kerry Houghton on 01772 555073.