Statement concerning new DC regulations
Wednesday 4 February 2015
The Pensions Regulator has issued a statement on regulations laid before Parliament today regarding new governance standards and charges for defined contribution (DC) pension schemes.
Andrew Warwick-Thompson, executive director for DC and public service pension schemes, said:
“The regulations laid before Parliament today are designed to drive up standards of governance in DC workplace schemes, including master trusts, and this is a welcome step.
“Our current DC code of practice sets out the standards of governance and administration we expect trustees to meet so that those saving for retirement are more likely to receive better retirement outcomes. We have worked closely with the the Department for Work and Pensions (DWP) to ensure the new regulations complement the work of the code in seeking to raise standards.
“We acknowledge that trustees are preparing for a period of intense change from April this year, when these regulations come into effect and the new pension freedoms are introduced.
“To help alert trustees and scheme managers to the new requirements, we will be publishing an essential guide later in February which will provide an overview of the new requirements that will affect many DC schemes. We plan to follow this up with more detailed guidance once the regulations have been made law in April.”
The regulator’s essential guide will cover:
- Meeting new governance standards.
- The appointment of a Chair and the annual submission of a Chair’s statement.
- New charge controls, including a charge cap on schemes that are used by an employer to comply with its automatic enrolment and other Pensions Act 2008 duties ('qualifying schemes').
- Further governance standards for master trusts.
Matt Adams 01273 662086