The provisions of the Pension Schemes Act 2021 creating new
criminal offences and financial penalties come into force on 1
October 2021.
The existing anti-avoidance regime confers power on the Pensions
Regulator to impose contribution notices on employers and connected
/ associated persons in prescribed circumstances. These
powers have been strengthened by the Act with the creation of new
criminal offences which are punishable by financial penalty (up to
£1 million) and / or imprisonment (for a term not exceeding
seven years).
The offences include:
- failure to comply with a contribution notice
- avoidance of an employer debt
- conduct risking accrued scheme benefits
The financial penalty may also be imposed in circumstances where
a person “knowingly or recklessly” provides false or
misleading information to the Regulator and / or trustees.
