Commenting on the Pensions Regulator’s new DC code of practice released today, Julian Rowe, Senior Technical Consultant, JLT Employee Benefits, said:
“The new DC Code released today by the Pensions Regulator is simpler and shorter than its predecessor, which had been criticised for being too long and overly prescriptive. The new Code is better aligned to constituent elements of good DC practice addressing different aspects of governance. The ‘how to’ guides, in particular, are evidence of an effective consultation with the industry.
“The new Code also takes into account the introduction of the pension flexibilities and governance requirements introduced from 6 April 2015. The broader aim is to continue to raise the overall standard of DC governance and administration.
“The Code does assume that those reading it have a good knowledge of the legislation which applies to their scheme, as it does not set out in detail these requirements. Trustee training of the legislative requirements should be undertaken where appropriate and where the Code is not prescriptive, trustee boards will need to make judgement calls as to what is a ‘reasonable and proportionate’ method of ensuring compliance for their scheme.
“Trustees should assess their scheme against the Code on an ongoing basis and use the assessment as an opportunity to review systems, monitor risks and prioritise actions. Overall this is a positive development which places the focus on the outcomes rather than the process, which has to be a good thing.”
Notes to Editor
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About JLT Employee Benefits
JLT Employee Benefits is one of the UK's leading employee benefit providers offering a wide range of benefit and pension services, including administration, actuarial and pension consultancy, investment, Self Invested Personal Pensions (SIPPs) and Small Self Administered Schemes (SSASs) administration, flexible benefits, healthcare, benefit communication and financial education.
JLT Employee Benefits employs over 2,200 professionals throughout the UK and in 2013 had revenues of £172m in UK & Ireland.
Pensions and employee benefits companies within the JLT Employee Benefits group of companies include: JLT Benefit Solutions Ltd, Profund Solutions Limited, JLT Wealth Management Limited, JLT Investment Management Limited and Independent Trustee Services Limited. JLT Employee Benefits is part of Jardine Lloyd Thompson Group plc.
About Jardine Lloyd Thompson Group plc
Jardine Lloyd Thompson is one of the world's largest providers of insurance and employee benefits related advice, brokerage and associated services. JLT's client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
JLT is quoted on the London Stock Exchange and owns offices in 39 territories with some 9,000 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.