The National Association of Pension Funds (NAPF) commented on the code of practice for defined contribution (DC) trust-based pensions from The Pensions Regulator (TPR), which was laid before Parliament today (Thurs).
Joanne Segars, Chief Executive, NAPF, said:
“Auto-enrolment means millions of people will depend on DC pensions for their retirement saving, so standards need to be as high as possible. This is a good initiative that should drive pension quality upwards.
“The Regulator’s first draft of this code was too long and very confusing. They have taken large chunks of it back to the drawing board and it is now in much better shape. The code is now more user-friendly and is clearer about the difference between trustees’ legal obligations and suggestions for good practice.
“But the big weakness of this code is that it excludes contract-based pension schemes, meaning around three million savers will be overlooked by this effort. Savers need to know they are getting a good deal, whatever kind of pension they are in.
“The NAPF is leading the way in setting out what good DC pension provision should look like through its PQM and PQM READY initiatives.”
Notes to editors:
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Aimee Savage Richards, Press Officer (interim), 020 7601 1718 or 07825 171 446, [email protected]