The Pensions Research Accountants Group (PRAG) has published guidance on the risks faced by defined contribution (DC) pension schemes. The guidance has been put together by PRAG’s DC Working Party and updates previous guidance, published in 2015, to reflect the considerable legislative and regulatory change since then.
Karen Tasker, Chair of the PRAG DC Working Party, said, ‘The guidance has been prepared to provide a practical insight into some of the key areas of risk faced by DC schemes today. It covers a number of risks forming part of the annual Chair’s Statement disclosure requirements. Each risk is accompanied by example controls and mitigations for consideration by trustees and scheme management.
‘With the continual flow of legislative and regulatory developments, we will keep the content under regular review and update the guidance as future changes come into effect.’
Shona Harvie, Chair of the PRAG Executive, said, ‘Risk management and controls are important in the DC world, and I would like to thank Karen and the members of the working party for producing this guidance paper. PRAG welcomes feedback on the guidance and on schemes’ developing experiences.’
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For further information, please contact PRAG’s Press Officer.