TPR campaign will drive pension scheme engagement on governance
Helen Baker, partner at Sackers, comments on the Pension Regulator’s (TPR) new governance campaign, part of its 21st Century Trustee initiative:
Good governance is fundamental to the effective operation of pension schemes and to achieving good outcomes for members. TPR is concerned that some schemes are not achieving the standards of governance that it expects, and has launched a new, targeted campaign to drive engagement with good governance practices.
The campaign will assist schemes by issuing publications that revisit the key elements of good governance in a clear and accessible format. The approach taken in the first publication (“Good Governance” issued on 18 September 2017) is very practical, drawing out specific points to consider and using case studies. All schemes should review the guidance, even where current standards are high, to confirm they measure up.
Governance is relevant to all aspects of a pension scheme. It is a vast topic and not always easy to work out how to make a start on reviewing aspects of scheme governance. It is therefore very welcome that TPR has approached 21st Century Trustee from a perspective of addressing key themes which are the basics of good governance.
Schemes will benefit from the structure of this ongoing campaign. TPR’s approach will give schemes the opportunity to consider each component as it is launched, enabling them to review, assess and decide whether changes would be beneficial over time.