DC governance

Copyright © 2026 LexisNexis

Rise of DC governance

With the increasing burden that defined benefit pension schemes have had on employers, and the introduction of the catalyst that is automatic enrolment, a dramatic rise in defined contribution (DC) pension schemes was somewhat inevitable. Now that DC is firmly under the spotlight, concerns have emerged about the need to achieve good member outcomes across DC workplace pension scheme (which encompass both occupational and personal pension schemes).

This has led to the introduction of various governance measures by the Department for Work and Pensions and the Financial Conduct Authority (FCA) for DC workplace pension schemes. These measures are broadly described below.

In addition, various measures limit costs and charges, such as bans on member-borne commission arrangements, consultancy charging, and active member discounts, as well as caps on charges for default funds and early exit charges. This helps to ensure value for members. For further information, see Costs and charges—overview.

DC occupational pension schemes

Key governance requirements for DC occupational pension schemes that are relevant schemes (effectively schemes offering money purchase benefits, subject to some exceptions) include mandating the appointment of a chair on trustee boards.

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Pensions News

SPP publishes practical guide on CDC pension scheme implementation

The Society of Pension Professionals (SPP) has published a paper titled ‘From Concept to Practice: A practical guide to CDC pension schemes’, which examines the practical considerations involved in implementing Collective Defined Contribution (CDC) pension schemes within the UK pensions industry. The guide provides insights into administration, cost management and governance, with the aim of making CDC schemes accessible, resilient and trustworthy for employers and savers.

Pensions weekly highlights—15 January 2026

This week’s edition of Pensions weekly highlights includes a review of key news stories, as well as dates for your diary and trackers.

Pensions Schemes Bill makes progress at Lords Grand Committee Stage despite strong reservations on LGPS reforms

The House of Lords Grand Committee (Grand Committee) opened its detailed scrutiny of the Pension Schemes Bill on 12 January 2026. Day 1 of the Grand Committee’s examination began on Chapter 1 of the Bill on the Local Government Pension Scheme (LGPS) and in particular Clauses 1 (Asset pool companies) and 2 (Asset management). Ultimately, all amendments debated on 12 January were withdrawn, and Clauses 1 and 2 were agreed without change. However, the debate raised significant cross-party concern about the breadth of ministerial powers, the heavy reliance on delegated legislation, the protection of fiduciary duty and the extent of ministerial influence over pension investment. On 14 January 2026, the Grand Committee continued its focus on the provisions of Chapter 1 of the Pension Schemes Bill when it agreed Clauses 6 (Mergers of funds), 7 (Amendments of 2013 Act relating to scheme regulations) and 8 (Interpretation of Chapter 1). Again, agreement was reached despite extensive debate highlighting concerns over compulsory mergers, funding positions, contribution prudence and employer affordability, surplus management, transparency, and the impact of local government reorganisation. The government peers maintained that existing statutory, actuarial and governance frameworks are sufficient and that further changes should be considered through consultation rather than primary legislation. The Grand Committee is currently scheduled to sit again on 19, 22 and 26 January 2026 when further detailed examination of the Pension Schemes Bill will continue.

Pressure group urges the House of Lords to agree to retrospective pre-1997 pension increases

Law360: The Pensions Action Group (PAG) has called on members of the House of Lords to back reforms that would see arrears payments made to retirees previously denied inflation-linked pension increases.

View Pensions by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit
Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some

Late payment penalties—inheritance tax

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal

If a beneficiary signs a deed of disclaimer of their share of an estate and the estate pays their legal fees, will that count as a PET against their estate?A disclaimer is the refusal of a gift prior to acceptance. The refusal of the gift must take place before the beneficiary accepts any benefit