The Pensions Regulator have begun publishing new guidance to help trustees get ready for landmark pension reforms that take effect on 6th April 2015.
On 6th April 2015, fundamental changes to the way people can take their pension benefits will take effect. Changes to the law mean many occupational pension schemes offering money purchase benefits will have to meet new. To help trustees prepare for the upcoming pension reforms, The Pensions Regulator has begun publishing new guidance. The first part of the communications package has been released, read the guide here.
Specifically for Defined Contribution (DC) trustees and managers, the “essential guide” has been designed and created to help trustees understand the new rules about governance and charge controls. There is guidance for trustees of defined benefit (DB) schemes on member requests for transfers from DB to DC schemes. There will be additional guidance available, following publication of further Department for Work and Pensions (DWP) regulations that will address the new pension flexibilities.
The Pensions Regulator’s executive director for DC Andrew Warwick-Thompson said, “The new minimum governance standards complement our existing DC code of practice and provide a stronger foundation in law for the standards we’ve said we expect of trustees in order to provide good outcomes for members.” He goes on to say, “…we expect trustees to still refer to the existing DC code, which we will update later this year to reflect the April 2015 legislative changes, and we will continue to highlight to trustees any changes in the law.”
Find more information on the new duties for defined contribution here.
The Pensions Regulator’s interim chief executive Stephen Soper said, “We will be supporting trustees and managers through this period of intense change – by giving them tools they need to understand their new responsibilities and their role in communicating to members about the impact of their retirement choices.” He goes on to say, “As well as our own material, we’re working with the DWP, Treasury, FCA, Money Advice Service, Pensions Advisory Service and others to make sure that a suite of information about the new pensions flexibilities is available and we will signpost trustees and managers to this as it develops.”
Be prepared, ensure you have the latest Sage 50 Payroll software that is fully HMRC compliant.