Bespoke audit support

Whatever type of DC pension scheme you use, you should regularly review the arrangements and operating processes to ensure you are compliant.

We will tailor our services to your needs, such as through periodic strategic checks or more detailed audits for particular areas of concern you may have.

Common areas to consider when auditing your DC scheme include pensionable pay elements, taxation of employee contributions, salary sacrifice and employer contributions during parental leave. Also, employers’ automatic enrolment duties are complex and wide ranging.

Audit errors to be aware of

The risk of errors increases greatly with key changes, such as scheme transition, scheme design, payroll systems and key personnel. Corporate transactions is another key time at which you may wish to undertake due diligence checks that the pension arrangements you are taking on are being run correctly.

Errors are best identified and rectified early. We will support you with appropriate checks, proposals for remedy, employee communications, liaison with pension providers and, where appropriate, reporting to The Pensions Regulator.

Key audit services

We offer the following general types of DC audit services, each of which can be tailored to your needs:

Strategic Overview Audit

High-level review of arrangements and operating processes

Implementation Audit

Review of specific changes made, e.g. transition to a new scheme

Deep Targeted Audit

In-depth review targeted at identified errors or areas of specific concern

It may be that a strategic overview audit or implementation audit identifies an issue that necessitates a following targeted audit.

Our auditing experience

When supporting clients with DC audit reviews, our approach has been to work collaboratively, applying our technical knowledge, analytical skills and experience.

We recognise the confidential nature and sensitivity associated with any identification of errors. We are practiced in impact analysis and considering missed investment returns, and we utilise our pension provider contacts to help with the practical aspects of making rectification payments. We routinely provide project management support and, on occasion, have provided secondment resource where clients have required internal support.

"Due to the complexity of our DC pension compliance issues and lack of in-house resource, Barnett Waddingham supported us via an employee secondment for a 6-week period. Their support has proved invaluable, providing assistance with identifying and resolving issues around contribution inaccuracies, calculating investment returns, through to drafting and reviewing member and Regulator correspondence. They have acted as a conduit between our internal teams and external suppliers, helping us to implement process changes with our payroll and pension providers, challenging them where required. We would not have been able to resolve these issues without BW’s technical expertise and support."
Client feedback January 2024

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