Week ending 19 July 2019
One code to rule them all?
The Pensions Regulator has announced that it will be reviewing its 15 codes of practice with a view to creating a single, shorter code. This work will take place over the next year and will focus on the codes that are most affected by recent regulatory change. This includes the IORP II changes which require schemes to have an effective system of governance and a documented risk assessment. Trustees will be required to have this governance system in place within twelve months of the updated code being published. The first codes to be reviewed will be code of practice 9 (internal controls) and 13 (defined contribution code).
A call to action
The GMP equalisation working group has published a call to action for schemes. There are three areas which the group thinks schemes should be working on now rather than waiting for more information, namely:
- progressing GMP reconciliation and rectification
- reviewing the data quality needed for GMP equalisation
- managing impacted transactions (i.e. transactions which need to be completed now but may need to be revisited as part of an equalisation project, for example transfers out).
The call to action sets out the key points for all those involved in GMP equalisation to consider.