Helping you transition to the new AAF 01/20

New AAF 01/20

The new AAF 01/20 assurance report has been developed to enable third party administrators to get independent assurance over relevant control activities.

AAF 01/20 replaces AAF 01/06 and is effective for periods beginning on or after 1 July 2020.

The report is needed as many pension schemes outsource aspects of their pension activities to third party administrators.

These tasks range from pension payroll, accounts preparation, contributions collection and investment, to name a few.

We have five top tips from working with pension administration providers on how to transition to the new AAF 01/20.

New AAF 01/20 Assurance Report shown by a pile of coins and upward direction percentage symbol. saving money for investment

5 Tips on how to transition to the new AAF 01/20

  • Hold the project planning meeting early to discuss the new AAF 01/20 requirements.
  • Update control activities before the reporting date
  • Discuss what is sufficient and appropriate evidence to demonstrate the control has operated effectively during the period
  • Collate evidence through out the period so as to spread out the resources required to complete the new AAF 01/20 report
  • Commit to regular communication, and hold progress meetings to evaluate the project throughout and manage queries as they arise

By working together with pension administration providers, clear project plans are created with realistic target dates set for all.

As the service auditor Assure UK work pension administration providers to deliver a comprehensive AAF 01/20 report, which demonstrates to clients how control activities operated during the reporting period.

The new AAF 01/20 report allows pension administration providers to formally demonstrate their specific control activities and report for a period these have met the control objectives set out in the Technical Release.

Other benefits to completing the new AAF 01/20 are processes and procedures are documented and can be standardised across teams and improvement learnings can be adopted.

As service auditors, Assure UK, strives to add value to this new assurance report process by providing business insight, improvement findings, and sharing our knowledge from working with others in the pension industry.

About Assure UK

Assure UK is a leading specialist pensions audit and assurance reports accountancy, supporting a broad range of pension trustees, administrators, and managers across the UK.

For more information about our services or advice on how to improve your pension audits and assurance reporting, please connect with us on social media, sign up for our newsletter, and regularly visit our website.