Trustees

Trustees

STOP PRESS: On 28 March 2024, the Pensions Regulator (TPR)’s new General Code of Practice came into force, through the Pensions Act 2004 (General Code of Practice) (Appointed Day, Amendment and Revocations) Order 2024, SI 2024/431. The General Code merges and updates ten of TPR’s existing codes of practice into a single code made of ‘51 shorter, topic-based modules’. TPR say this new format will make it easier for governing bodies to find TPR’s expectations and certify whether they meet them.

The ten codes of practice affected are those relating to reporting breaches of the law, early leavers, late payment of contributions, trustee knowledge and understanding, MNTs/MNDs, internal controls, dispute resolution—reasonable periods, DC governance and public sector governance.

Among other things, the General Code of Practice includes a module on trustee remuneration and sets out TPR's expectations on administration and maintaining an effective system of governance (ESOG), as required by the Occupational Pension Schemes (Governance) (Amendment) Regulations 2018, SI 2018/1103 (which implement IORP II). Scheme governing bodies will be expected to demonstrate that they have appropriate procedures and policies in place and schemes of 100 members

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Pensions News

Pensions Ombudsman orders former director of trustee company to pay £9.7m to two pension schemes (Dalriada Trustees (PO-16266))

Pensions analysis: The Pensions Ombudsman (PO) has upheld a complaint brought by Dalriada Trustees Ltd (Dalriada) and others of multiple instances of breach of trust and maladministration against Ecroignard Trustees Ltd (Ecroignard) and a Mr Shroff, a former director of that company. Ecroignard has been wound up—although its ultimate dissolution has been suspended until 2028. Written by Paul Carney, a partner at Shoosmiths LLP.

PPF responds to Work and Pensions committee regarding the indexation of compensation relating to pre-1997 benefits

The Pension Protection Fund (PPF) has responded to the Work and Pensions Committee letter dated 17 December 2024 regarding the impact of increasing PPF and Financial Assistance Scheme (FAS) payments. PPF’s response includes revised figures detailing the potential impact of indexing pre-97 compensation for PPF members and FAS payments. The updated calculations, based on the 2023/24 annual report and accounts, encompass various scenarios including prospective and retrospective changes to indexation, removal of the 90% factor for deferred members, and alterations to FAS assistance increases. The PPF emphasises that the cost implications are sensitive to market conditions, particularly nominal yields. The data presented includes comprehensive breakdowns of the effects on PPF assets, liabilities, funding levels, and reserves under different indexation scenarios, providing a nuanced view of the financial implications of potential policy changes.

PSIG announces consultation outcomes and future plans

The Pension Scams Industry Group (PSIG) has revealed the results of its recent consultation, ‘Evolution or Extinction’ which sought to determine the organisation's future direction. The feedback indicates strong industry support for PSIG's work, particularly its Code of Good Practice. Respondents called for more proactive measures, including increased lobbying efforts, an interactive information hub, and expanded services such as training and accreditation schemes. However, despite the demand for enhanced services, the industry has not committed to providing funding for PSIG's operations. Looking ahead to 2025, PSIG plans to publish an updated Code of Good Practice, maintain its involvement with the Pension Scams Action Group, and continue offering the Pension Scams Industry Forum. The group will review its options and present a proposal for future operations later in the year.

Government ignores calls for redress over women’s state pension age failings

Law360: The Labour government announced on 17 December 2024 that it will not compensate women affected by historical failures to inform them that their state retirement age had changed, in a move campaigners called an 'unprecedented political choice' set to have long-term repercussions.