Many pension trustees are falling short of the standards of The Pension Regulator’s codes, the regulator has warned.
The TPR is also concerned that some trustees are not aware of the standards.
TPR’s latest general code was laid in Parliament on Wednesday and is expected to come into force on 27 March.
It brings together and updates 10 existing codes of practice into a set of clear and consistent expectations on scheme governance and administration.
In July research from TPR showed 40% of trustees of micro and small schemes were either unaware of its codes of practice or had never heard them.
Despite industry consultation on the new code, less than a quarter (23%) of the trustees of DC schemes were still unaware a new code was set to be introduced. Trustees of small and micro schemes were the least likely to report being aware, with just one-fifth (19%) and almost one-tenth (9%) respectively.
Louise Davey, interim director of regulatory policy, analysis and advice at The Pension Regulator, said: “Our new general code is an opportunity for governing bodies to make sure their schemes meet the standards of governance we expect, and savers deserve. It means there is no excuse for failing to know what TPR expects of them.
“Some governing bodies have already grasped this opportunity and carried out analysis to ensure there are no gaps in their governance. However, we believe there are many who have not done so and risk falling short of our expectations.”
The new general code sets out what TPR expects of a scheme that is required to maintain an effective system of governance. It includes key aspects of running a scheme, including risk management.
TPR said it will expect scheme governing bodies to be able to demonstrate that they have appropriate procedures and policies in place.