Value for trustee money?
Editorial: The new defined contribution code that came into force this week is, by and large, being welcomed by the pensions industry, which lauded the focus on legal advice (Sackers), as well as its emphasis on administration (PASA) and security of assets (Working Party on DC Governance).
Responding to calls from the industry, the Pensions Regulator has made the new code simpler and about half as long.
It has also tried to align it with today’s technology, as it can be used on tablets and mobiles and links to relevant legislation.
But some criticism came from consultants Hymans Robertson, with Rona Train saying value for money, being mostly qualitative, will be less than perfect in its first year.
How it can be made more measurable is as yet unclear; Train says wider industry comparisons should emerge.
When the draft code was issued, others had even questioned the need for a dedicated value for money section, saying this should automatically be created if all the components are right.
Alas, that is easier said than done, and so a reminder of what it is that the DC world has to give DC members can only be helpful. The same goes for the fact that the code is now shorter.
Education bandwagon
Of course it can only be shorter because it explains less, assuming more knowledge on the side of the reader than the old code.
This implies that the reader who does not understand should not only understand that they don’t, but also act on that awareness.
That’s an opportunity too good to be missed by savvy pension companies and organisations, though the trend towards professionalisation and qualifications has been going on for some time.
The Pensions Management Institute is consulting on a new trustee diploma, while mallowstreet is launching an online learning tool called ‘Black Belt’, tapping into the need for trustee education.
We might see many more courses emerge as time passes. I wonder if the value for money paradigm will apply to them as well.
Sandra Wolf is editor at Pensions Expert. You can follow her on Twitter @SandraCWK and the team @pensions_expert.