Small Businesses: Pensions
The question
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the adequacy of (a) regulatory oversight and (b) consumer protection for Small Self-Administered Schemes (SSAS); and if she will take steps to (i) improve regulatory oversight of SSAS trustees and (ii) ensure that people who have suffered losses relating to SSAS are able to access compensation.
Answered by Torsten Bell
DWP officials work closely with The Pensions Regulator (TPR) to ensure people’s pension savings are protected and that the regulatory regime remains fit for purpose in a changing pensions landscape.
A Small Self-Administered Scheme (SSAS) is an occupational pension scheme typically set up by the directors of a business (often a small or family-run business) who want more control over the investment decisions relating to their pension and often the ability to invest in employer-related assets.
The Pensions Regulator regulates those SSAS which are required to register with it (only occupational pension schemes with two or more members must register with TPR). A SSAS with only one member would be exempt and is unlikely to be registered with TPR. In addition, SSASs are excepted from many pensions regulatory requirements because all the members of these schemes, through being trustees, are responsible for the decisions made. SSASs are therefore not usually eligible for Government compensation arrangements.
Unfortunately, in a few cases SSAS appear to have been misused as a means of avoiding the regulatory regime which helps ensure that members’ pensions are secure. Individuals have been encouraged to use a SSAS inappropriately. Any member who has suffered a loss in connection with a SSAS should contact the Pensions Ombudsman in the first instance.
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