RPSM05300040 - Scheme Administrator Pages: Contributions and tax relief: Member contributions - overview: What records must I keep of contributions

What records must I keep of contributions made into the scheme?

This is an area where The Pensions Regulator (TPR) rather than HMRC has the direct responsibility, however here is a brief summary of their requirements. The trustees of most schemes must draw up and maintain a schedule showing the contributions due to the scheme. A defined benefits scheme, including a hybrid arrangement, must have a schedule of contributions and a money purchase arrangement must have a payment schedule. Where a hybrid arrangement provides defined benefits and money purchase benefits, the schedule of contributions must show amounts and due dates for the contributions due in respect of each type of benefit separately. There are separate legal requirements about how the contents of a schedule of contributions or payment schedule should be arrived at, but both types of schedule must include:

• the amount of employee and employer contributions, shown as a percentage of pay or as an amount of money; and
• the dates by when these contributions must be paid (the "due dates").

The trustees should make sure that the amounts and due dates proposed in the schedule of contributions or payment schedule do not breach:

• the 19-day rule; or
• the minimum payments requirements, if the scheme is contracted out on a money purchase basis.

Trustees may have to report to TPR and to the scheme members if contributions are not paid by their due date under the schedule.

Some schemes do not have to have a schedule of contributions or payment. Trustees who are not sure about whether their scheme needs a schedule or about the requirements relating to schedules of contributions or payment schedules, should take advice from their appointed adviser, the insurance company that looks after their scheme or TPR.