Get ready for the Single Code of Practice
Understanding the Single Code of Practice
The Pensions Regulator’s (TPR) new Single Code of Practice is due to be finalised during 2022. The single Code will apply to all scheme types and sets out TPR’s expectations regarding new legal requirements for schemes with 100 members or more to operate an ‘Effective System of Governance’ (ESOG).
The ESOG is a step up from the existing requirements for pension schemes to have an “adequate” system of governance (Pensions Act, 2004). The ESOG framework includes processes and procedures across 17 modules in the new Code relating to management of activities, organisational structure, investment matters, and communications and disclosure.
To help schemes prepare for compliance with the ESOG, LCP has produced a guide that offers a high-level summary of the new requirements. In it, we set out an analysis of the requirements in each of the relevant areas and indicate what policies and procedures schemes will need to have in place.
We’ve also set out some key considerations that will help you determine how to implement the new requirements. Proportionality will be key to this process and the systems and controls established by a scheme will be dependent on the size, scale, complexity, and nature of your scheme.
Please explore our Guide to the ESOG or watch our webinar on demand by clicking on the buttons below. If you would like to know more about the ESOG and how it affects your scheme, do get in touch with your usual LCP DC adviser.
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