Key issues for your trustee agenda

TPR’s ‘General Code’ came into force at the end of March. Trustees should consider what changes they will need to make to their scheme’s governance to comply with TPR’s expectations. While schemes will be at different points in their governance journeys, most need to undertake work and are likely to need assistance along the way.

Schemes should also ensure they are conversant with other recent TPR guidance publications, for example those in relation to cyber security, EDI and climate risk.

ACTION: Ask about our new Pensions Governance Hub that helps schemes assess, comply and maintain compliance with the new Code.

• With connection dates now heading fast towards us, ensure your dashboards preparation is on track. As TPR warns, trustees are ultimately accountable for dashboard compliance, and must not simply assume that other parties have everything in hand. Schemes should have robust governance in place to track progress, manage risks, and ensure data quality.
• Are you up to date with recent publications? TPR released refreshed dashboards guidance, with some significant updates and clarified expectations, in mid-December; the PDP issued updates to its data standards, reporting standards and code of connection in November; and additional PASA guidance was shared.
• TPR reminds schemes that they need to be alert to developments as they happen, and to liaise regularly with relevant third parties. TPR’s recent ‘hot topic’ publication covers how trustees should be working with advisers, providers and administrators to meet their duties. Further TPR articles, and design standards, are expected early in 2025.

• Familiarise yourself with TPR’s new draft DB funding code which was laid in Parliament at the end of July and aligns more closely with the new funding regulations). TPR’s Response sets out key differences from the original draft.

• The new DB funding and investment regime broadly takes effect for valuations from 22 September 2024 onwards, but the code will not come into force until later in the autumn. TPR will communicate with schemes affected by this gap, and will ‘take a reasonable regulatory approach to them.’

• Identify when the new requirements will apply to your scheme, and consider what your funding and investment strategy will look like, taking legal, actuarial and covenant advice where relevant.

• Watch out for further publications: TPR’s guidance on and a finalised template for the statement of strategy, guidance on TPR’s regulatory approach with further detail on its ‘twin-track’ approach, and revised employer covenant guidance are all still awaited.

A new Finance Act plus additional regulations completed the abolition of the Lifetime Allowance (LTA) and introduction of new allowances from 6 April 2024. A new deadline of 5 April 2025 is also proposed for applications for certain existing protections.

Unsurprisingly, the changes have proven complex, and resulted in further regulations being required to fix initial errors. HMRC’s guidance notes and newsletters remain a key source of information for all parties.

ACTION: Trustees and administrators should consider changes required arising from the abolition of the LTA and introduction of the new lump sum regime. They should also monitor publication of the further changes to the legislation and any further HMRC guidance. See our Insight for what trustees and employers should be prioritising.

Join TLT’s Pensions team on 4 June for a workshop exploring tricky issues around buy-in and buy-out. Watch out for more details in the coming days!

Register here