The Pensions Regulator has set out the next steps in its work with the pensions sector on improving standards and outcomes in defined contribution (DC) schemes.
A revised code of practice setting out practical guidance to help trustees to meet the legislative requirements for running occupational trust-based DC schemes is published today. The draft DC code has been laid before Parliament and the Northern Ireland Assembly, and subject to that process, is expected to come into force in November 2013.
View the revised code of practice in regulating work-based defined contribution (DC) pension schemes.
Executive director for DC, governance and administration Andrew Warwick-Thompson said:
“Getting DC pensions right is central to making automatic enrolment a success and improving retirement incomes for millions of people.
“Although there are many excellent DC schemes governed in members’ best interests, overall standards remain mixed. The code of practice will help to meet trustee demands for practical guidance on how they can meet the legislative requirements for running a DC scheme.”
Mr Warwick-Thompson emphasised that there are examples of good practice in both trust- and contract-based schemes and that the regulator is committed to working in partnership with the pensions community, the Department for Work and Pensions and Financial Conduct Authority to attain consistently high standards across the DC landscape.
The regulator has also published its response to its recent DC consultation package. The regulator received 68 responses and there was broad agreement with the key areas raised in the consultation. The feedback has helped to make the code more practical and accessible for trustees.
To assist trustees in their duties, in coming months the regulator plans to publish updated good practice guidance for the governance and administration of DC schemes, and updates to the modules of its Trustee toolkit e-learning programme.
To help employers, the regulator will shortly publish an updated guide to help employers select a good DC pension scheme and an updated guide to operating a management committee for the governance of a workplace personal pension, for those employers wishing to do so.
Mr Warwick-Thompson added:
“We want to make it as straightforward as possible for employers to choose a good scheme for their workers. We believe that schemes governed in accordance with the principles and features we have set out are more likely to provide that reassurance.”
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