New requirements for trustee knowledge and understanding now effective

The Pensions Regulator's revised Trustee Knowledge and Understanding (TKU) code of practice is now in effect. The code sets minimum requirements for trustees to help ensure pension schemes are run effectively.

Following consultation, the regulator found widespread support for the TKU regime, demonstrating how it has become embedded in trustee activities since implementation in 2006. Most respondents acknowledged the positive change it has made to the way trustees approach their responsibilities.

The learning requirements, set out in the code, which have been in force for over two years have been updated, and the key changes are:

- In order to know the essential elements of the scheme's trust documentation, trustees will be required to read it all thoroughly;

- It is more explicit that the regulator expects trustees to use the Trustee toolkit unless they can find an alternative learning programme.

The guidance supporting the code has also been subject to a review. The most significant change is that there is a reduced requirement on trustees of small (12-99 members) fully insured DC schemes.

Pensions Regulator chief executive Tony Hobman said:

"The responses we received to the consultation were very positive and we welcome the increased confidence with which trustees now approach their responsibilities.
"We know that the code has worked for trustees and we are building on this progress to enable them to continue to maintain and improve their knowledge and understanding.
"We will continue to encourage trustees to complete the Trustee toolkit modules that are appropriate for their scheme and to seek appropriate additional training wherever they see fit."

To view the press release:
http://www.thepensionsregulator.gov.uk/mediaCentre/pressReleases/pn09-19.aspx

Media relations
The Pensions Regulator
amediarelations@thepensionsregulator.gov.uk

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