In November 2015, TPR published a new draft Code of Practice on the governance and administration of defined contribution (DC) trust-based pension schemes. TPR has now published a series of ‘how to guides’ setting out more practical guidance for trustees on how they can satisfy their legal obligations and the standards that TPR expects.
Sara Cook, Director at PASA, commented: “We believe the Code should be wholeheartedly welcomed by those working in pension administration. It is particularly useful for trustees assessing their schemes and is actually more far reaching than new legal requirements relating to governance and administration.”
Key aspects in relation to administration are:
• Greater prominence at trustee meetings.
• Accurate and more frequent record-keeping reporting to evidence that work is being carried out properly.
• Expectation that contributions are invested within three working days of receipt and completion of a reconciliation exercise.
• Consultation on the potential introduction of mandatory or recommended maximum timescale for completing DC transfer values.
• Requirement that the Chair’s statement provides evidence on how the scheme represents good value for members.
• Encouraging trustees to establish whether their administrator has been accredited, and that this should be subject to review on a more frequent basis.
Cook continued: “This new code is good news for administration, providing the groundwork for lots of positive development in the future. It is particularly gratifying that not only is TPR’s approach within its guides perfectly aligned with our own approach in that it focuses on outcomes, specifically member outcomes, but also that PASA accreditation has been given as a specific example of independent accreditation. This clearly demonstrates how important the PASA accreditation has become and that “good administration is the bedrock of a well-run plan.”* PASAs full response to the guide can be found here The draft Code is expected to replace the existing DC Code from mid-2016.
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