PASA publishes guidance for DC schemes on admin governance

The Pensions Administration Standards Association has published new guidance for defined contribution schemes on administration governance.

The guide, DC Administration Governance Guidance, is aimed at administrators, employers and trustees. It is designed to support people in managing responsibilities in the five core areas - data, decumulation, controls and processes, management information and transitions.

It has been welcomed by The Pensions Regulator – its executive director of regulatory policy David Fairs said he welcomes the guidance which outlines what the good administration of DC pension schemes should look like. “Guidance such as this supports trustees, employers and administrators to work together and ensure that this essential part of scheme management is prioritised,” he said.
PASA DC Administration Governance Working Group chair Michael Watkins noted that DC is becoming the dominant way for people to save for their pension.

“There are also more types of these arrangements in the market than ever before, which all rely on strong administration governance to run effectively. Although on the face of it, running DC schemes may appear straightforward, the underlying administration is far more complex. DC schemes have a host of unique and complex governance challenges. For members to achieve good outcomes, these must all be given as much attention by trustees as investment choice and performance.”

Commenting on the guidance, JLT Employee Benefits managing director Malcolm Reynolds said: “We have a strong relationship with PASA having actively supporting them since their inception, and we are proud to have collaborated with the DC Governance Working Group on this guidance which will make a significant impact on raising standards of DC administration and governance.

“As a leading industry provider of pension administration services, we have a duty to ensure that our clients comply with regulation and policy. The administration of DC pension schemes can be notoriously complex, and this guidance will provide much-needed support and advice for any individual involved in overseeing these schemes. We strongly believe that we have a responsibility to influence industry thinking, and that acting as the voice of our clients will help the industry to improve standards and member outcomes.”

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