This is the ‘how long is a piece of string’ question. There is no right answer because just like defined benefit schemes, trustee based defined contributions schemes are different. They have employers with different reasons for having the scheme in place, different contribution rates for employer and members, different default funds and costs. That said, trustees have a responsibility, that, whatever their governance budget may be, to run the scheme effectively and provide value for money (of which more another time).

The Pensions Regulator’s DC Code of Practice 13 is currently up for review. A proposed consultation start date of the end of September has now been replaced with sometime in November 2015. On the upside, one of the outputs will be that all the DC guidance will be in one place as opposed to hunting around the Pensions Regulator’s website.

The changes introduced in the 2014 Budget which became effective 6 April 2015 and the 2015 summer budget have meant that since November 2013 (when the Code was first published) the world of defined contributions pensions has changed beyond recognition. Amongst the many questions arising from this is ‘How do we get the scheme governance right?’

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator color=”custom” accent_color=”#666666″][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]In this first of a series of blogs around defined contribution scheme it is not possible to go into the detail, but as our starter for ten[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator color=”custom” accent_color=”#96bd0d”][/vc_column][/vc_row][vc_row][vc_column width=”2/3″][vc_column_text css=”.vc_custom_1445523938014{background-color: #5e5e5e !important;}”]As with a defined benefit scheme, know where you are (see our blogIf you don’t know where you are going“) [/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”296″][/vc_column][/vc_row][vc_row][vc_column width=”2/3″][vc_column_text css=”.vc_custom_1445524069836{background-color: #d3d3d3 !important;}”]As a trustee board mind map your scheme specific objectives,investment choice, administration, member freedoms etc[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”295″][/vc_column][/vc_row][vc_row][vc_column width=”2/3″][vc_column_text css=”.vc_custom_1445524167240{background-color: #5e5e5e !important;}”]Take your agreed objectives and overlay these against the Pensions Regulators Quality features (all 31 of them) and the legislative requirements[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”296″][/vc_column][/vc_row][vc_row][vc_column width=”2/3″][vc_column_text css=”.vc_custom_1445524288850{background-color: #d3d3d3 !important;}”]Develop the scheme business plan, prioritising on the areas which the trustees believe to be the most important for the scheme. Every bit as importantly keep the plan under review and make adaptions as the Scheme needs change.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”295″][/vc_column][/vc_row][vc_row][vc_column][vc_separator color=”custom” accent_color=”#96bd0d”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

As the value of assets in DC schemes grows, one thing you can be sure about, and that is that DC scheme governance requirements will only increase in the future. By having gone through a process to develop good scheme governance this will flow through to issues such as value for money and good member outcomes. Trustees need to start planning.

CBC can share their DC experiences with you….For a no-obligation discussion about our experience contact us by telephoning 0845 4334 199 or email at


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