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
  • August 2016
08

TPR publishes new defined contribution (DC) code of practice and guidance on legislative compliance

Open-access content Wednesday 3rd August 2016 — updated 5.50pm, Wednesday 29th April 2020

The Pensions Regulator’s new code of practice for defined contribution (DC) pension schemes has taken effect.

2

It sets out the standards that pension trustees must meet to comply with legislation, and applies to all schemes offering money purchase benefits.

Executive director for regulatory policy Andrew Warwick-Thompson said: "Millions of people are being auto-enrolled into defined contribution pensions, so it's essential that schemes are being managed to a high standard.

"In revising the code, we have responded to calls from the pensions industry to shorten and simplify it, with an increased focus on legislative requirements." 

An updated compliance and enforcement policy for occupational DC schemes has also been published, which describes TPR's expectations for legislative compliance and how it will proceed to enforce the law.

Mr Warwick-Thompson added: "We will act where trustees demonstrate that they are not meeting even the basic 'hygiene' duties of preparing their chair's statement or completing a scheme return, as this is often an indicator of more serious stewardship failings."

The new code has six sections: the trustee board, scheme management skills, administration. investment governance, value for members, communicating and reporting.

Hymans Robertson partner Rona Train said: "At the moment, assessment of value for members will be mostly qualitative and it's probably fair to say this won't be perfect in its first year. One of the reasons is a lack of industry-wide data. How to achieve cross-industry benchmarking is something we're looking at.

"The regulator has called on large schemes to use information sharing through their consultants and professional trustees as one way of assessing value."

Julian Rowe, senior technical consultant at JLT Employee Benefits, said: "The new code is better aligned to constituent elements of good DC practice addressing different aspects of governance. The 'how to' guides, in particular, are evidence of an effective consultation with the industry.

"The code does assume that those reading it have a good knowledge of the legislation which applies to their scheme, as it does not set out in detail these requirements."

He said trustee training in the legislative requirements should be undertaken where appropriate and where the Code is not prescriptive, trustee boards would need to judge what is a 'reasonable and proportionate' method of ensuring compliance.

This article appeared in our August 2016 issue of The Actuary.
Click here to view this issue
Filed in
08
Topics
Investment

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Environmental, Social and Governance- GI Actuary

England, London
£70000 - £170000 per annum
Reference
145888

Calling All Australian Actuaries

England, London
£50000 - £120000 per annum
Reference
145887

Calling all GI Actuaries looking to move into contracting

England, London
£700 - £1000 per day
Reference
145886
See all jobs »
 
 

Today's top reads

 
 

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