Freedom & Choice in Pensions April 2015
Trustee Checklist for Defined Contribution and Defined Benefit Schemes
Pensions Freedom Day will occur on 6 April 2015. Since George Osborne first announced the new pension freedoms for the UK in 2014’s Budget, Trustees have been looking at how they will implement these new flexibilities into their schemes, whilst managing scheme member expectations. Many have been left wondering what they need to do to achieve minimum compliance, what they should consider and what best practice might look like.
Whilst it is not a requirement for pension schemes to offer any of the Chancellor’s new flexibilities, at the very least there are aspects of the legislation that must be complied with. Crucially, this affects both DC and DB schemes. The speed of the changes and the piecemeal nature of the drafting of legislation and guidance have meant that Trustees have been reluctant to begin preparations for the changes in their schemes. If Trustees have yet to commence work on the changes, they should focus their efforts to make sure their schemes are compliant by 6 April 2015. They can then begin to consider what further action is needed for best practice in their schemes.
In this guide we highlight minimum compliance requirements and also set out the range of issues that should be considered by Trustees of both DC and DB schemes for best practice.