The UK Pensions Regulator has published a document containing industry-wide views on the regulation of define contribution schemes, after its recent consultation. In addition, the regulatory body has released a discussion paper on pension scheme governance.
The define contribution (DC) document identifies key issues for DC schemes including administration, investment choices, charges, decisions on retirement choices and member awareness. The consultation document set out proposals on how DC schemes will be regulated. Responses to this document will further assist the regulator to publish a guide on how the Pensions Regulator will regulate DC schemes in due course.
The regulator has invited comments from the pensions community on its discussion paper on pension scheme governance. The paper highlights the pivotal role of education and the importance of good governance in running all schemes. Key themes relating to defined benefit schemes are managing conflict, the employer covenant and relations with advisers.
Pensions Regulator chief executive Tony Hobman said: Our approach to both DC regulation and governance will be to educate, enable, and then enforce – supporting schemes is our priority, alongside partnership working. Intervention will be only as a last resort.