Pensions - Articles - Capita comments on the Pensions Regulator DC consultation

 Commenting on the Pensions Regulator’s consultation on a draft code of practice for defined contribution (DC) schemes, Paul Sturgess, head of DC, Capita Employee Benefits, said:

 “A focus on proper and effective governance of DC schemes, whether they are occupational or contract based, is essential. The Pensions Regulator’s framework is a logical structure for encouraging this where it is not already in place. We have to move away from the old world of ‘set up and forget’ in DC. Enlightened employers are already on this path but there remains work to do. Currently I share the industry’s concern that the proposals don’t go far enough with contract based arrangements. 

 “With auto enrolment underway, governance is more important than ever given that some members will be barely aware that they are in workplace schemes. It is crucial that workplace arrangements operate in a way that gives members proper protection, notably around default funds.

 “Auto enrolment deals with scheme membership but it makes limited inroads into the much more complex issue of member engagement. Good governance is crucial for this.”