Managing DC benefits
You need to focus on a number of areas if your scheme provides defined contribution (also known as ‘money purchase’) benefits.
These will help you to meet your legal obligations and ensure your scheme is well run and more likely to deliver good member outcomes.
The DC code sets out the standards we expect you to meet when complying with the law. Each of the code’s six sections is supported by a guide that sets out practical guidance on how you can meet the standards:
Good administration is the bedrock of a well-run scheme. Make sure your trustee board works well with your scheme administrator, and that you have the right people and processes in place to ensure members’ benefits are administered to a high standard.
Make sure you meet your legal obigation to assess value for members and you understand what elements contribute to the value your members get from your pension scheme.
Make sure you understand your pension scheme members’ views and needs, and you communicate with them at the right time and in the right way to help them make good decisions. Understand your duty to prepare a chair’s statement and report information to us.
If the defined contribution scheme you run fails to meet legal requirements, we will consider various options (such as educate, enable or enforce) and take action where necessary.