The Pensions Regulator in the U.K. fined two master trusts for failing to comply with defined contribution regulations.
Executives of multiemployer occupational plans, or master trusts, have been required since April 6, 2015, to prepare an annual statement within seven months of the end of the plan's financial year. The statement must also be signed by the chair of trustees before this deadline.
The trustee of the £500 million ($617 million) Nurture Master Trust, Essex; and the trustee of three Save & Prosper Funds, Preston, England, totaling £13.8 million in assets, failed to comply with the regulation, TPR said in a news release.
“Completion of the chair's statement by trustees is a basic requirement of good governance, and we expect trustees to comply,” said Nicola Parish, executive director at TPR, in the news release. TPR “will enforce the law and impose a penalty where trustees of plans fail to prepare an annual governance statement signed by the chair of trustees,” Ms. Parish added.
The Nurture Master Trust received a fine of £2,000, imposed on its professional trustee, MC Trustees. Save & Prosper Funds received a total penalty of £3,020.70.
The trustees of both master trusts have since taken steps to prepare the statement and did not contest the penalties, TPR said.
Officials at the master trusts could not be reached for comment.