How to Guides

To support the new DC code of practice, the Pensions Regulator has produced six “how to” guides which provide useful information and set out practical ways in which trustees might meet the standards of governance and administration of DC schemes  and demonstrate their compliance with legal requirements.
They are intended to keep up with best practice in the market as it evolves and with the Pension Regulator’s vision for what is required of a 21st century trustee and are not intended to be prescriptive.
Each guide deals with a section of the DC code including:
  • The trustee board - the role of the trustee, from appointment through to succession planning and the overall composition of the trustee board.
  • Scheme management skills - how trustees acquire the necessary knowledge and skills, how to work with third parties (such as advisers, providers and employers), and how to deal with conflicts of interest.
  • Administration - covers a wide range of activities. Supported by illustrative examples and case studies. 
  • Investment governance - covers how to choose an appropriate delegation structure, including use of investment sub-committees, the importance of setting out clear terms of reference for all parties involved in investment decision making.
  • Value for money - assess value for money by gathering information on what the scheme provides for members and at what cost, assess the scope and quality of scheme services and evaluate the scope and quality of those services relative to costs.
  • Communicating and reporting - explains how getting to know members and engaging with them can help them get the most out of their pension arrangement with a particular focus on the 'at retirement' period.. In addition, trustees have a number of statutory reporting obligations, including chair statements, statements of investment principles and scheme returns to the Pensions Regulator.