The NAPF has responded to the Pensions Regulator’s consultation on its proposed Code of Practice for trust-based DC schemes.

While the Code’s focus on quality is welcome, it is currently too prescriptive and risks causing confusion for trustees. The Code lacks clarity in places and conflates compulsory legal requirements with best practice. Such a prescriptive code may push employers offering trust-based pension schemes into contract-based pension schemes.

However, there is a place for a slimmer, objective-based code. More broadly, we also need to rethink how workplace pensions are regulated. It is regrettable that contract-based schemes are not covered by a code that promotes quality pensions. The NAPF is arguing that there is a strong case for the Pensions Regulator to take a greater role in regulating all workplace pensions, including contract-based schemes.

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