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HMRC internal manual

Pensions Tax Manual

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HM Revenue & Customs
Updated
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Information and administration: other information requirements for scheme administrators: pension savings statements provided automatically to the member

Glossary PTM000001
   

 

For guidance on the information included in pension savings statements for tax years 2011-12 to 2014-15 and the deadlines for providing the statements see the Registered Pension Schemes Manual on the National Archives website (external readers please see [http://webarchive.nationalarchives.gov.uk//http://www.hmrc.gov.uk/manua…](http://webarchive.nationalarchives.gov.uk//http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM06107510.htm)).

 

When the scheme administrator must automatically give information to the scheme member
Type of pension savings statement
Deadline for automatically providing a pension savings statement to the member
When the scheme administrator does not provide the pension savings statement on time
When incorrect information has been given on the pension savings statement
Reporting to HMRC that a pension savings statement has been given to a scheme member

When the scheme administrator must automatically give information to the scheme member

Regulation 14A The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567

The scheme administrator must give a member a pension savings statement automatically for a tax year if

  • the individual is

    • an active member for all or part of the pension input period ending in that tax year, or
    • in the case of a defined benefits arrangement or cash balance arrangement, a deferred member for all or part of the pension input period and the ‘deferred member carve-out’ described in PTM053900 does not apply

and either

  • for tax year 2015-16 only
    • their pension input amounts under the scheme for tax year 2015-16 overall are more than £80,000, or
    • their pension input amounts under the scheme for the post-alignment tax year are more than £40,000, or
    • the scheme administrator believes the individual has flexibly accessed a money purchase arrangement and the individual’s money purchase pension input amounts under the scheme for tax year 2015-16 overall are more than £10,000, or
  • for tax years 2016-17 onwards
    • their pension input amounts under the scheme for the tax year are more than the annual allowance amount in section 228 Finance Act 2004 (for example, £40,000 for tax year 2016-17), i.e. the tapered annual allowance is ignored, or
    • the scheme administrator believes the individual has flexibly accessed a money purchase arrangement and the individual’s money purchase pension input amounts under the scheme for the tax year are more than £10,000.

Tax year 2015-16 is split into two ‘mini’ tax years for annual allowance purposes (see PTM058010 for more details).  Despite this, when required to do so, a single pension savings statement is issued for tax year 2015-16.

Guidance on how and when a scheme administrator should be notified that a member has flexibly accessed their pension rights starts at PTM166100.

Split schemes

If the registered pension scheme is a split scheme in accordance with the Registered Pension Schemes (Splitting of Schemes Regulations) 2006 - SI 2006/569 - the requirement to provide information falls on the sub-scheme administrator.

Type of pension savings statement

From tax year 2015-16 pension savings statements come in two forms:

Standard pension savings statements

Where the scheme administrator believes that the member either:

  • has not flexibly accessed their pension rights, or
  • has flexibly accessed their pension rights and their money purchase pension input amount under the scheme for the tax year is not more than £10,000.

Money purchase pension savings statement

Where the scheme administrator has reason to believe that the member has flexibly accessed their pension rights and their money purchase pension input amount under the scheme for the tax year is more than £10,000.

PTM167200 provides guidance on what information the scheme administrator must provide on a pension savings statement.

What are money purchase pension input amounts

Money purchase pension input amounts are pension input amounts made to all the following types of arrangements under the scheme:

  • other money purchase arrangements,
  • cash balance arrangements
  • hybrid arrangements being the highest of input amounts A (cash balance) and B (other money purchase) - see PTM053500.

If a member does not meet the conditions for being given a pension savings statement automatically they can still ask the scheme administrator for information about their pension input amounts under the scheme. PTM167300 gives more information about what happens when the scheme administrator is asked for information about pension input amounts.

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Deadline for automatically providing a pension savings statement to the member

Regulation 14A(4) to (6) The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567

A pension savings statement for a particular tax year should be given to the individual by 6 October following the end of the relevant tax year.

For certain schemes the scheme administrator needs information from another person to allow them to calculate the pension input amount for a member. There are regulations requiring certain information to be provided to the scheme administrator - see PTM167400.

If the scheme administrator has not been given this required information on time the deadline for giving the pension savings statement to the member is extended. The deadline becomes three months following the day the scheme administrator received the required information.

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When the scheme administrator does not provide the pension savings statement on time

Section 98(1) Taxes Management Act 1970

If the scheme administrator does not provide the pension savings statement on time they can be liable to the penalties described at PTM160800.

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When incorrect information has been given on the pension savings statement

Section 98(2) Taxes Management Act 1970

The most important thing is to give the correct information to the individual as soon as an error has been identified.

Penalties can be given for supplying incorrect information on the pension savings statement. - see PTM160800.

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Reporting to HMRC that a pension savings statement has been given to a scheme member

Regulation 3 the Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567

If a scheme administrator gives the member a pension savings statement automatically they must report this fact to HMRC on the Event Report. The information the scheme administrator must provide on the Event Report depends on:

  • did they have reason to believe that the member had flexibly accessed their pension rights, and
  • were the member’s money purchase pension input amounts under the scheme more than £10,000?

If the answer to either of these questions is ‘no’ then the scheme administrator should have issued a standard pension savings statement and make a report under reportable event 22.

If the answer to both these questions is ‘yes’ then the scheme administrator should have issued a money purchase pension savings statement and make a report under reportable event 23.

PTM161600 provides guidance on the information that should be reported on the Event Report.