27 July 2018
The Pensions Administration Standards Association (PASA), the only independent body dedicated to driving up standards in pensions administration, announces the publication of its DC Administration Governance Guidance for administrators, employers and trustees. The guidance will support people in managing responsibilities in the five core areas – Data, Decumulation, Controls & Processes, Management Information and Transitions.
Michael Watkins, Chair of PASA’s DC Administration Governance Working Group, said: “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.”
Kim Gubler, Deputy Chair of PASA and Board Sponsor of the DC Administration Governance
Working Group, said: “A real point of concern for PASA is a confusion among everyone involved
in DC schemes over where accountability for administration governance lies. While it can be true for trust based schemes, it is particularly apparent with contract based group arrangements. Our DC Administration Governance Working Group’s guidance sets out clear boundaries of accountability to help alleviate this for everyone. PASA’s aim is to promote greater understanding of how administration governance interrelates with the other areas of governance. We believe this emphasis on administration will not only make DC schemes more straightforward to run, but benefit member outcomes”
David Fairs, Executive Director of Regulatory Policy at The Pensions Regulator, said: “Good governance is key to a well-run pension scheme that ensures good outcomes for members. Good governance means motivated, knowledgeable and skilled trustees with the right structures and processes in place to enable effective and timely decisions and risk management.
Our 21st CenturyTrusteeship work aims to drive up the standards of governance – we want to see those running pension schemes being a knowledgeable, empowered first line of defence for members. “We welcome guidance like this from PASA, 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.”
To view PASA’s DC Administration Governance Guidance in full, click here.
