Trustees should consider the positive benefits of providing financial education to members.
Most members will need help to understand their investment choices and how to make the most of them for their individual circumstances and needs. Pension engagement exercises and wider financial education programmes that support all employees from new hires to those retiring, can empower members to understand the value of their pension, and to make good, informed decisions throughout their pension saving years, as well as at retirement.
This can help trustees fulfill their 'Investment governance' and 'Communicating and reporting' conduct code responsibilities.
A revamped code of practice for DC schemes is under consultation for release in July 2016. The Pensions Regulator is consulting on a revised code of practice on the governance and administration of occupational trust based defined contribution arrangements (the DC Code). The new code is intended to set out the standards of conduct and practice that the Regulator expects trustee boards to meet. It has been streamlined from the 2013 version and revamped to reflect the new money purchase flexibilities for members and the April 2015 legislation on money purchase charges and governance. The code is due to come into force in July 2016, but in the meantime is likely to be of use to trustees and advisers.