The Pensions Regulator (TPR) published a consultation yesterday on the draft content for the first phase of a new consolidated code of practice. The new code will set out TPR’s expectations on scheme management and administration.
Running a pension scheme is becoming more and more demanding in an ever-changing environment that is increasing in complexity.
The aim of this new code is to provide clearer and more accessible guidance that meets the current needs of pension schemes. One change in style is that TPR has a fresh approach to setting out its expectations (listing them).
The code consists of 51 topic based modules. It will replace 10 out of 15 of TPR’s existing codes of practice, which mainly deal with the management, governance and administration of pension schemes. The new code also incorporates some legislative changes on pension scheme governance and own-risk assessments. TPR expects that the five remaining existing codes (relating to notifiable events, scheme funding, modifying subsisting rights, the material detriment test and authorisation and supervision of master trusts) will be brought into the new code in due course.
TPR welcomes comments on any aspect of the new code as well as comments on specific questions. The closing date for responses is 26 May 2021.
TPR will also be discussing the new code of practice in a virtual workshop, which you can express your interest in joining.
We will be taking a closer look at the consultation and will be providing further thoughts on the contents shortly.
The new code is described as largely a consolidation and re-presentation of existing codes although there are some changes for trustees to note. For example the code includes detail on cyber security (whereas currently TPR’s content on cyber security is contained in regulatory guidance), so elevating its status.
The new code will replace 10 of our existing codes of practice. These mainly deal with the governance and administration of pension schemes.