With effect from 1 October 2022, auto-enrolment schemes that provide DC benefits only will be required to issue new simpler annual benefit statements to their members (excluding pensioners). The statements will need to be in a format that does not exceed one double sided sheet of A4 paper when issuing a paper statement and the equivalent length when printing a digital statement accessed on-line or via e-mail. The content and layout of the statement should enable the member to easily understand:
Pension schemes are able to use their own branding and colour schemes, but this should not obscure the flow of information, nor should it increase the length of the annual statement beyond the permitted length. The language used should be simple, accessible, and avoid use of jargon or complex terminology. When designing their statements, trustees and providers should refer to the DWP's statutory guidance, which is designed to help them understand how to present the information and meet the new requirements.
A review of their effectiveness will be carried out before 1 October 2027, and within every five years after that, with the DWP considering the lessons learnt when deciding whether to extend the approach to other schemes.
Trustees and providers of in scope schemes will need to ensure that they are ready to produce the new simpler statements in time for their first annual benefit statements that need to be issued on or after 1 October 2022.