In January 2013, the Pensions Regulator issued for consultation a draft Code of Practice, guidance material and a regulatory approach document. This material is designed to confirm the Regulator’s expectations of governance standards for occupational trust based Defined Contribution pension plans. The Regulator expects compliance from all trustees who offer money purchase benefits, including additional voluntary contribution arrangements. So all Defined Benefit and hybrid DB/DC pension plans are affected by it, unless they have no money purchase facilities.
The Regulator's publications represent an important and valuable contribution to the governance debate but they also contain a number of challenges for trustees. Trustees of all occupational pension plans with a DC element should undertake a governance review when the Code and guidance are issued in their final form. Our publication contains a checklist of considerations and actions for trustees, based on the current material.