The trustees of an occupational DB pension scheme are required to prepare, and from time to time review and if necessary revise, a schedule of contributions.
The schedule sets out the rates of the contributions payable to the scheme and the dates by which those contributions should be paid. It enables the trustees to monitor whether the contributions due to the scheme have been paid.
TPR’s code of practice on Funding Defined Benefits sets out various principles for trustees to adhere to when preparing or revising the schedule of contributions. These include:
- ensuring that the schedule is drafted sufficiently clearly to enable them to monitor payments;
- where there are many different rates in force, explicitly setting out those rates, if possible, to avoid the need to refer to other scheme documents;
- specifying a due date for member contributions which is no later than the nineteenth day of the month following the month of deduction from pay; and
- avoiding reference to the contributions covering individual augmentations or benefit improvements, unless these were planned and due to be paid when the schedule was certified.