New DC governance regulations laid before Parliament

Regulations are being laid before Parliament today regarding new governance standards and charges for defined contribution (DC) pension schemes. 

The Pensions Regulator says it will publish an essential guide for trustees explaining the new rules, which will cover the 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 and further governance standards for master trusts.

Pensions Regulator executive director for DC and public service pension schemes Andrew Warwick-Thompson says: “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 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.”