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The number of people in DC pension schemes will increase dramatically over the next few years. However, many of these new members will be automatically enrolled into a scheme rather than actively deciding to start saving. TPR's core aim is to ensure that all DC members are placed in schemes that are effectively governed, durable and offer value for money.
This consultation relates to a new code of practice, accompanying regulatory guidance and a regulatory approach document. These will establish a new framework that allows TPR to regulate the governance and administration of DC schemes. The framework applies to occupational DC trust-based schemes, but TPR is working with the Financial Services Authority (FSA) to ensure that the regulation of work-based personal pensions (contract-based schemes) delivers comparable outcomes.
TPR has designed the new DC code and regulatory guidance to complement each other and they should be read together. Both publications are underpinned by TPR's six DC principles and an updated version of the DC quality features which represent the standards and behaviours TPR expects trustees to attain. The DC quality features will help scheme trustees to demonstrate compliance with legal requirements and incorporate best practice.
During development of the DC quality features TPR carried out research to evaluate the extent to which they are present in existing occupational DC schemes. This provided insight into how schemes may interpret and evidence the quality features as well as providing estimates for the current presence of the quality features within schemes.
The closing date of the consultation is 28 March, 2013.