Earlier this year, The Pensions Regulator published a draft replacement for its rather tired looking Code of Practice 13 – which was all about Defined Contribution (DC) pensions. The new version was shorter and snappier: much more user friendly.
At the same time as they published the draft they promised a swathe of guides that would give practical guidance. The first six of those guides have now appeared. Over the next six days we’ll share five things that you need to know about each of the six guides, followed by a bonus seventh list of five things you should know about the guides in their entirety. This one is really important, so don’t forget to read that list.
5 things to know about the new DC codes
No. 1 – The trustee board
- This guide sets out how to appoint new trusteesand includes some useful ideas on the due diligence to perform on a candidate trustee, suggesting where to look and what evidence to gather.
- It also addresses succession planning on a board – giving practical guidance on matters like timing, but struggling (as we all do) with actually having a back up pipeline of possible trustees.
- It pays proper justice to the role of the Chair – usefully setting some of it out. This vital function is often under rated and, consequently, poorly executed.
- It discusses board composition and diversity – another matter often undervalued and ignored.
- It provides a list (an odd list in my view) of things that “should be covered in every meeting”.
Next time on 5 things to know...
No. 2 – Scheme management skills