Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • November 2013
11

TPR issues refreshed good practice guide for DC trustees

Open-access content Friday 22nd November 2013 — updated 4.12pm, Monday 4th May 2020

The Pensions Regulator's new code of practice for trustees of defined contribution trust-based pension schemes has come into force

It sets out practical guidance on how pension trustees can meet the underlying requirements of pension's legislation. 

The regulator said it was concerned that opaque costs and charges deducted from a member's fund could have a significant impact upon the value of their pension and wanted to help trustees capture the total cost and benefits of scheme membership in a way that will demonstrate its value for money for members. 

From next year, the regulator plans to undertake thematic reviews of the extent to which trust-based DC schemes are compliant with pensions legislation and associated good practice in different areas. Where necessary, it would take enforcement action to address breaches in the underlying law.

TPR said it has also published information to coincide with the code coming into effect, including its compliance and enforcement policy for DC casework and updated good practice guidance on areas not covered by the code. 

Andrew Warwick-Thompson, TPR's executive director for DC, governance and administration, said: '[Now], we expect DC trustees to assess their scheme against the standards set out in the DC code. Our aim is to protect retirement savers and to ensure their money is invested in good quality schemes that are well-run in the members' best interests. Schemes that fall short of these standards should expect some difficult questions, and they may incur enforcement action in order to rectify breaches in pensions law.'

Professionals welcomed the clarity provided by TPR. 

Nick Cook, senior consultant at Towers Watson, noted that increased focus on DC pension schemes had never been more crucial and the guidance was an important step. 

'The number of DC members, total DC contributions and DC assets are increasing at an exponential rate yet the level of understanding and engagement of people in DC schemes seems to remain stubbornly low. DC members need some help, and the regulator's clarification... of its expectations should be the kick start that is needed to help make DC schemes better and get people further up the good outcomes ladder,' said Cook.

However, he warned that it was important trustees do not view it as a tick-box exercise.

At Hymans Robertson, Lee Hollingworth, partner and head of DC Consulting, said the guidance was helpful but DC had to 'to shake off the perception of being the poor relation of DB'

He said a key element of this was to demonstrate to members that DC schemes adhere to the very highest standards and quality features.

'The regulator has rightly focused on the need to provide DC pensions which are good value for money. We agree that high charges eat into your pension pot and that's why we support a cap on charges. There is absolutely no reason why some scheme members should languish in high-charging, legacy funds,' said Hollingworth. 

'Similarly, the Pensions Regulator is right to expect trustees to shop around for the best deal for their members. Consumers shop around for everything else in life - from car insurance to their next holiday - there is no reason why trustees shouldn't shop around too.

This article appeared in our November 2013 issue of The Actuary .
Click here to view this issue

You may also be interested in...

ta

Proposed pension fee cap 'too high', says Legal & General

Legal & General has warned that the government's planned 0.75% cap on pension management fees is too high and would cost savers thousands of pounds each
Thursday 28th November 2013
Open-access content
ta

DWP to begin recruiting new TPR chair

The Department for Work and Pensions has announced that it will shortly start the search for a new chair for The Pensions Regulator
Friday 8th November 2013
Open-access content
ta

FRC consults on new risk management standards

The Financial Reporting Council is considering changes to the risk management and reporting aspects of the corporate governance code imposed on listed companies and auditors
Wednesday 6th November 2013
Open-access content
ta

Begg calls for tough pensions regulator

Automatic enrolment means the pensions industry is in need of a strong regulator with teeth, a senior MP has warned
Wednesday 6th November 2013
Open-access content
ta

Aviva calls for urgent action on pension liberation fraud

The pension industry should act now to end liberation vehicles and apply stricter rules to stop people being persuaded by fraudsters to access their retirement savings early, Aviva has warned today
Friday 1st November 2013
Open-access content
2

IFoA: questions remain on Scots independence

The Scottish Government’s white paper on independence leaves many questions on future financial regulation unanswered, actuaries have warned
Wednesday 27th November 2013
Open-access content

Latest from Regulation Standards

tfd

A matter of adjustment

Private assets will continue to shine even under the Treasury’s proposed changes to the Solvency II matching adjustment, says Ziling Jiang
Wednesday 2nd November 2022
Open-access content
ykf

A home run: reducing inequality through impact investing?

Sophie van Oosterom, Wojciech Herchel and Mark Callender consider how ‘impact investing’ in social housing could help to reduce inequality
Wednesday 5th October 2022
Open-access content
hgv

Exchange of ideas: IFRS 17 implementation in the Caribbean

Servaas Houben considers how IFRS 17 principles could benefit insurers in the Caribbean – and what European insurers could learn from the region when it comes to implementing the standard
Wednesday 31st August 2022
Open-access content

Latest from November 2013

2

Global pandemic tops poll of insurance industry risks

Insurers from around the world have ranked the risk of a global pandemic as the most extreme event that could impact the industry, Towers Watson has revealed today.
Tuesday 3rd December 2013
Open-access content

Swiss Re forecasts insurance premium growth

Insurance premiums are expected to increase next year as the global economy strengthens, reinsurer Swiss Re has said today
Monday 2nd December 2013
Open-access content
2

Regulator sets out new approach for DB schemes

The Pensions Regulator has launched a consultation into the future of defined benefit funding after it said there was a need to minimise the impact pension liabilities could have on employer’s expansion plans.
Monday 2nd December 2013
Open-access content

Latest from no_opening_image

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
ta

IFoA adjudication panel: Mr Jack Wicks, student

On 30 October 2019 the Adjudication Panel considered an allegation of misconduct against Mr Jack Wicks (the respondent).
Friday 28th February 2020
Open-access content

Latest from 11

2

Global pandemic tops poll of insurance industry risks

Insurers from around the world have ranked the risk of a global pandemic as the most extreme event that could impact the industry, Towers Watson has revealed today.
Tuesday 3rd December 2013
Open-access content

Swiss Re forecasts insurance premium growth

Insurance premiums are expected to increase next year as the global economy strengthens, reinsurer Swiss Re has said today
Monday 2nd December 2013
Open-access content
2

Regulator sets out new approach for DB schemes

The Pensions Regulator has launched a consultation into the future of defined benefit funding after it said there was a need to minimise the impact pension liabilities could have on employer’s expansion plans.
Monday 2nd December 2013
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

BPA Transition Manager

London, England / Edinburgh, Scotland
£45000 - £65000 per annum + market leading bonus and benefits
Reference
148878

London Market Pricing Contracts - Inside & Outside IR35

London (Central)
£1000 - £1300 per day
Reference
148877

SME Pricing Director

London (Central), London (Greater)
£225K + bonus + benefits
Reference
148872
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ