The Member-Nominated Trustees and Internal Controls codes of practice from the Pensions Regulator (TPR) came into effect on 22 November 2006 (SI 2006/3079).

The 'Member-nominated trustees and directors - putting in place and implementing arrangements' code requires that at least one third of trustees are member-nominated; or at least one third of directors of the trustee company be member-nominated. The arrangements must include a nomination process, a selection process and satisfy other statutory requirements.

The internal controls code gives guidelines to trustees and managers of occupational pension schemes on how to meet legislative requirements, as well as outlining the regulator's expectations in relation to the assessment of risk, implementation and review of adequate controls.

We reported on the scope and content of these codes when they were laid before Parliament in the summer. Altogether TPR has now provided nine codes of practice; the tenth and at this stage final one planned, on modification of subsisting rights, is currently before Parliament (see article elsewhere on this site).

Meanwhile, TPR has announced two new initiatives concerning defined contribution pension schemes:

1. as part of TPR's online e-learning programme, a new module dedicated to DC schemes - with a two-minute trailer to try out; and
2. a consultation [PDF] on proposals to address the risks to members and how TPR will regulate DC schemes. The risks TPR identifies (which are covered in the new e-learning module) are
   • poor administrative practices;
   • poor investment practices;
   • unduly high charges;
   • poor decisions on retirement choices; and
   • lack of member understanding.