Pension trustees' agenda: key legal issues - May 2021

• 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

• 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

• 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