The Pensions Administration Standards Association (PASA), says the new Pensions Regulator's (TPR) DC code and 'how to guides' are a positive move for pensions administration.

TPR published a new draft Code of Practice on the governance and administration of defined contribution (DC) trust-based pension schemes in 2015.

Since then, it has now published a series of 'how to guides' setting out more practical guidance for trustees on how they can satisfy their legal obligations and TPR standards.

Sara Cook, PASA director, said: "We believe the Code should be wholeheartedly welcomed by those working in pension administration.

"It is particularly useful for trustees assessing their schemes and is actually more far reaching than new legal requirements relating to governance and administration."

Key aspects of the Code in relation to administration include – greater prominence at trustee meetings, accurate and more frequent record keeping with evidence that work is being done properly, and expectation that contributions are invested within three working days of receipt.

Consultation on the potential instruction of mandatory or recommended maximum timescale for completing DC transfer values, evidence in the chair's statement on how the scheme represents good value for its members, and reviewing whether their administrator is accredited on a more frequent basis, are also key highlights.

Cook said: "The new code is good news for administration, providing the groundwork for lots of positive development in the future.

"It is particularly gratifying that not only is TPR's approach within its guides aligned with our own approach in that it focuses on outcomes, specifically member outcomes, but also that PASA accreditation has been given as a specific example of independent accreditation.

"This clearly demonstrates how important the PASA accreditation has become and that good administration is the bedrock of a well-run plan."

First published 09.06.2016

Lindsay.sharman@wilmingtonplc.com