Pension trustees' agenda: key legal issues

May 2021

There are three key legal issues we recommend trustees consider over the coming months.

  • Single code of practice
  • Criminal and civil penalties - TPR guidance
  • DC transfers
Single code of practice

Single code of practice

  • 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

Criminal and civil penalties

Criminal and civil penalties - TPR guidance

  • 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

DC transfers

DC transfers

  • 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

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