There are three key legal issues we recommend trustees consider over the coming months.

  • Single code of practice
  • Criminal and civil penalties - TPR guidance
  • DC transfers
Single code of practice

Single code of practice

  • New code of practice on scheme governance
  • Replaces the ten existing codes of practice with fifty one modules, nine of which introduce new content
  • Intended to help schemes meet the requirements of the new governance regulations

Find out more about new code of practice

Criminal and civil penalties

Criminal and civil penalties - TPR guidance

  • Two new criminal offences for defined benefit pension schemes:
    • Avoidance of employer debt
    • Conduct risking accrued scheme benefits
  • Unlimited fine and/or imprisonment up to seven years
  • Increased risk factors and how to mitigate these

Find out more about offences

DC transfers

DC transfers

  • Government is encouraging consolidation of DC schemes into master trusts to improve governance
  • From 5 October 2021 trustees need to complete an annual assessment on value for members
  • Points to consider if transferring to a master trust include:
    • Charges and fees structure;
    • The provision of benefit flexibilities;
    • Matching existing retirement targets;
    • Death in service provision;
    • Protected pension ages;
    • Transfer back facilities for hybrid schemes.
  • PASA intends to publish guidance to improve transfers between DC arrangements in early 2022.

Find out more about DC transfers

Written by

Sasha Butterworth

Sasha Butterworth

Date published

26 May 2021

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