According to the regulator’s Corporate plan 2007-2010, the regulator said it will make sure that the funding requirements set by the 2004 Pension Protection Act and those requirements included in the associated code of practice (released in 2006) are met and implemented effectively.
Some of the actions the Pension Regulator intends to take to improve the governance of work-based pensions over the next three years include:issuing a consultation paper about its approach to governance; building trustees’ awareness, skills and behaviors through working in partnership with other bodies in the pension community; and refining guidance and education tools for trustees.
The regulator said it will try to reduce the effect of five risks associated with DC plans that can have a direct impact on the level of benefits following retirement, such as:
- Contributions must be paid and allocated accurately and on time and high standards of record-keeping are essential;
- Retirement choices
- Member understanding