Sections

The Pensions Regulator

Codes of practice

Codes of practice

Code of practice 07
Trustee knowledge and understanding (TKU)

The scope of the body of knowledge

  1. The scope of knowledge that is required under these legislative sections is set out below in broad subject areas. The details are set out in the Scope Guidance which may be found on the regulator's website (www.thepensionsregulator.gov.uk) and may be amended from time to time.
1. The law relating to trusts

This includes an understanding of the special nature of a pension trust and the duties, obligations and powers of trustees to operate pension schemes in accordance with the law and with the trust deed and documents.

2. The law relating to pensions

This includes occupational pensions legislation (in outline) and the key provisions of related legislation that affects pension schemes and impacts on the role and activities of trustees.

3. Investment: defined benefit and defined contribution scheme occupational arrangements (DB) and (DC) (including Additional Voluntary Contributions (AVCs))

This includes the different types of assets available for investment and their characteristics.

4. Funding: DB

This includes the principles relating to the funding of occupational DB schemes and the way in which funding is dependent upon the financial circumstances of the sponsoring employer and the value of the liabilities of the scheme.

5. Contributions: DB

This includes the principles relating to the funding of occupational DB schemes and the way in which contribution levels are dependent upon the funding of the scheme.

6. Strategic asset allocation: DB

This includes the principles relating to the suitability of different asset classes to meet the liabilities of the scheme.

7. Funding: DC (including AVCs)

This includes the principles relating to the funding of occupational DC arrangements and the risks borne by scheme members.

8. Investment choices: DC (including AVCs)

This includes the principles relating to the choice of investments.

9. Fund management: DB and DC (including AVCs)

This includes the principles of fund management and how performance can be measured.