Pensions Regulator Updates Trustee Guidance On Active Member Discounts In DC Schemes

The Regulator has updated its scheme management detailed guidance for trustees of DC schemes in relation to the prohibition on giving charging discounts for active members.

Since April 6, 2016, trustees of occupational DC schemes used as qualifying schemes for auto-enrolment have been barred from imposing higher charges on non-active members compared to actives. The Regulator's guidance note Value for DC scheme members sets out the prohibition and explains how it works in practice. Among other things, the guidance advises trustees that if they are unsure whether their scheme provides for an active member discount, they should compare the rate and/or level of charges imposed on a non-contributing member to those that the member would have faced if they were a contributing member.