“The communications package being published by The Pensions Regulator should be welcomed by both the industry and trustees alike. These short guides will be invaluable tools for trustees as the industry cannot expect the majority of lay trustees to read lengthy consultation documents and legislation. The essential guide on DC governance and charge controls will be particularly relevant for smaller schemes who may not necessarily have access to the level of professional advice afforded by larger pension schemes. The guide will remind trustees to review scheme fundamentals, governance frameworks, investment strategy, member communications and retirement processes to ensure that schemes are exceeding minimum quality standards and providing good outcomes for members and sponsors.
Additional guidance on DB to DC transfers and DC flexibilities have been long awaited by trustees. Whilst trustees are keen to promote members having additional flexibility many are concerned about being seen to be responsible for the decisions taken by members and are therefore shying away from offering some of the new flexibilities introduced. Trustees will need to prepare member communications carefully to get the right balance between providing members with information and not advice or recommendations.
The step by step guidance on DB to DC transfers should be of particular relief to trustees as it shows that they only need evidence that the member has received advice and do not need to investigate what advice has been received and whether it has been followed by the member.”
|
