As a result of the increased existence of defined contribution
schemes The Pensions Regulator has been keen to communicate with DC
trustees exactly what good governance should look like.
The shift from defined benefit (DB) schemes to defined
contribution (DC) schemes may have occurred without the recession,
but it certainly seems to have accelerated it. Other factors
causing this shift include increased longevity, the impositions of
tighter funding and governance requirements, the pressure of scheme
deficits on company balance sheets and auto-enrolment.
The background
In 2012, The Pensions Regulator conducted its annual Governance
Survey. The results showed that 67% of DB trustees are engaged with
their scheme in comparison with 34% of DC trustees-figures that TPR
is no longer prepared to accept.
