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Codes of Governance for DC Schemes

January 21, 2016

The Pensions Authority proposes to introduce codes of governance for DC schemes including AVC schemes.  It is expected that the codes will provide trustees with guidance on minimum standards expected across a number of key areas including:

  • Governance
  • Risk management
  • Management of conflicts of interest
  • Conduct of trustee meetings 
  • Collection and remittance of contributions
  • Calculating and paying benefits
  • Keeping records 
  • Reporting scheme information to the Pensions Authority 
  • Investment 
  • Member communications
  • Providing members with value for money

The Pensions Authority sought submissions in relation to its draft codes of governance for DC schemes and recently issued a synopsis of the responses which it received.  The draft codes cover the standards of conduct and practice which the Authority expects from all DC trustees.  The Authority will now consider the points made and decide on whether any amendments of the draft codes are necessary.  


The responses received by the Authority analysed the various codes proposed and highlighted the impact that the codes may have on the various sizes of pension schemes including the added costs involved in meeting the standard requirements. The responses also highlighted issues which had not been covered in the codes such as the implications of low contributions and benefit adequacy, concerns that trustees have around the provision of financial advice to members, trustee training and the data protection obligations of trustees.