The Pensions Regulator began a new campaign on 20 August to remind trustees of the DC governance requirements which came into force on 6 April 2015, including a list of standards and charge controls.
The campaign is designed to remind trustees and others who run DC pension schemes of the Regulator’s existing guidelines, including the DC code and essential guide to communicating with members about pension flexibilities.
What does this mean?
Trustees must now meet the new governance standards, and explain how they have achieved this in the chair’s annual statement. They must also have an appointed chair who can sign the annual statement.
Schemes are also now obliged to comply with a charge cap of 0.75% on all qualifying schemes which are being used for automatic enrolment.
The Pensions Regulator will be using scheme returns to monitor compliance, so the returns now include a section on the changes introduced in April 2015. The Regulator has produced a checklist to help schemes fill out the return, including sections on charge controls, the rules on chairs, and automatic enrolment.
What will happen next?
The Pensions Regulator is working to develop more guidelines and material to remind trustees of their duties with regard to DC pension schemes, particularly those which have been introduced this year. The campaign will run until March 2016, but will pause during November and December when the Regulator will consult on the revised DC code, which is being amended to include these latest updates.