Pensions - Articles - Revised DC code recognises importance of legal advice

 “We welcome the arrival of practical, example based, guidance and the statement from TPR that this is not intended to be prescriptive. We expect this will improve standards of best practice, to help trustees manage their responsibilities more effectively. We are also heartened that this recognises the importance of seeking legal advice given that this is commonly overlooked – particularly in DC investment matters.

 “TPR’s response to the consultation on the guides is clear that there will be no mandatory timescale for making pension transfers which reflects the current concerns around pension scams. However, there will be further transparency measures in the new year, which could be a helpful way of driving behavioural change.

 “TPR suggests trustees should approach DC governance in a proportionate manner, and assess the significance of additional voluntary contributions (AVCs) relative to members’ overall benefits in the scheme. This could be tricky for schemes which have a varied membership profile, as some members could be affected much more than others. However, further examples and suggestions of how to deal with this could be built up over time, as experience and best practice in this area develops.”