Pension requirement for an effective system of governance—internal controls
Pension requirement for an effective system of governance—internal controls

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Pension requirement for an effective system of governance—internal controls
  • Statutory duty to establish an effective system of governance including internal controls
  • Duty explained by the Pensions Regulator’s Code of Practice
  • Contents of the updated Code
  • Scope and timing of the updated Code
  • Status of the updated Code
  • Who does the statutory duty apply to?
  • What are internal controls?
  • How to establish and operate internal controls
  • Identifying risks
  • More...

CORONAVIRUS (COVID-19) UPDATE: As a result of the coronavirus pandemic, the Pensions Regulator (TPR)
expects trustees to have appropriate monitoring and contingency planning in place (eg a business continuity plan) and to understand their service providers’ business continuity arrangements. Trustees should also understand what contingency is in place to mitigate any under-resourcing issue and establish with their administrators which scheme activities should be prioritised. Scheme trustees should liaise with their investment advisers to understand whether their investment strategy remains appropriate. DB trustees were also asked to have an open dialogue with employers about scheme funding implications of the coronavirus pandemic (including any employer request for flexibility in respect of deficit repair contribution (DRC) payments). In particular TPR directed DB schemes to its guidance on effective Integrated Risk Management.

TPR has also emphasised the importance of trustees working with the scheme’s administrators and that focus should be on critical processes such as paying members’ benefits, retirement processing, and bereavement services.

For more information, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees.
FORTHCOMING DEVELOPMENT: The Pensions Regulator (TPR) announced that it intends to review its codes of practice to reflect the Occupational Pension Schemes (Governance) (Amendment) Regulations 2018, SI 2018/1103 (the Governance Regulations) and that this is expected to involve combining the content of its 15 current codes

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