The introduction of statutory governance standards for DC schemes in 2015 was driven by the explosion of DC provision which came with auto-enrolment. Good governance remains essential, not just to remain the right side of TPR, but because it has been consistently identified as key to good member outcomes.
New requirements for pension scheme governance came into force on 13 January 2019 as part of the UK’s implementation of IORP II. The Pensions Act 2004 duty for trustees to establish and operate internal controls has been replaced with a new requirement to establish and operate “an effective system of governance including internal controls”.
TPR is required to set out the detail of the new requirement in revised codes of practice (expected later in the year). To help make sure they are prepared, TPR has advised schemes to familiarise themselves with its expectations for scheme governance, as set out in its 21st century trustee campaign.
Our governance experts can help you to establish and improve your governance frameworks. We understand the law that underpins them so we can find governance solutions that address legal issues and work for your scheme.
- Advising on the content of chair’s annual statements
- Providing trustee training on compliance with TPR’s Code and guidance, and its expectations as set out in its 21st century trustee campaign
- Advising trustees on how to assess value for members
- Chairing two industry groups: one for IGCs and their providers who are collaborating on various research programmes around “value for money” and benchmarking and a second for master trusts as they explore authorisation and supervision
- Reviewing trustee skills and effectiveness, and identifying any skills gaps
- Providing input into trustee business planning
- Advising employers on the terms of reference for their governance committees.