New DC Code of Practice
The Pensions Regulator has today published its updated defined contribution (“DC”) code of practice (Code of Practice No. 13), replacing the existing version of that code which was published in 2013. The new code is called Governance and administration of occupational trust-based schemes providing money purchase benefits.
The new code reflects changes in legislation since the 2013 version, and covers the following areas:
- the trustee board;
- scheme management skills;
- investment governance;
- value for members; and
- communicating and reporting.
The revised code is accompanied by six guides for trustee boards, one corresponding to each of the six topics listed above.
Codes of practice are not statements of the law, and it is not necessary always to follow every provision of a code so long as the underlying legislative requirements are met. However, a court or tribunal may take the provisions of a code of practice into account, and the Regulator may in some circumstances direct a person to take steps specified in a code.