Schemes vary considerably. A scheme’s DC benefits might relate solely to Additional Voluntary Contributions (AVCs). At the other end of the spectrum a scheme may be entirely DC, or it could have both DB and DC sections. The Pensions Regulator’s expectations of trustees with DC benefits are set out in its Code of Practice 13: “Governance and administration of occupational trust-based schemes providing money-purchase benefits”.  

Code of Practice 13 is supported by practical guidance in six key areas. Some of this guidance relates to expectations of pension trustees generally, so there is a degree of overlap with the governance of DB arrangements. Other parts of the guidance cover trustees’ governance duties specific to DC benefits, such as:

  • reviewing default investment arrangements
  • ensuring the promptness and accuracy of “core financial transactions”
  • disclosing costs and charges, and assessing value for members
  • reporting annually within a governance statement (the “chair’s statement”)

The Regulator specifically mentions that trustees of schemes with both DB and DC sections should ensure that sufficient time is devoted to issues relating to DC benefits.