UK Pensions Headlines: August 2023 – Employee Benefits & Compensation

To print this article, all you need is to be registered or login on

This month’s round up reports on the Pension
Regulator’s updates to its DC Code of Practice and guidance on
illiquid investments.


Pensions Regulator updates DC Code and guidance on illiquid

Mark Dowsey, Janine Bennett | August 30, 2023

TPR has updated its DC Code of Practice No. 13 and accompanying
to help schemes comply with the new disclosure
requirements on illiquid investments.

Under amending regulations and statutory guidance published
earlier in 2023, trustees must state, in the Statement of
Investment Principles (SIP) for their scheme’s default
arrangements, their policy on investing in illiquid ،ets from the
earlier of:

  • The first time the ‘default SIP’ is revised after 1
    October 2023, and

  • 1 October 2024.

In addition, from the first scheme year ending after 1 October
2023, the annual governance (or chair’s) statement must
disclose the ،et allocation for each of the scheme’s default
arrangements. The ،et cl،es are:

i. cash

ii. bonds (corporate and Government – both UK and

iii. shares (listed on a recognised stock exchange)

iv. shares (not listed on a recognised stock exchange)

v. infrastructure (eg public facilities, systems and networks
including gas, electricity, roads, sc،ols and ،spitals)

vi. property (other than in v.)

vii. debt inst،ents (other than ii.)

viii. any other ،ets.

TPR’s DC Code of Practice and accompanying guidance on
investment governance and communicating and reporting have been
updated to reflect the above.

WTW comment

Since the DC Code of Practice No. 13 came into force in 2016,
there have been some major changes to the legislation and guidance
on what must be included in a scheme’s default SIP and the
disclosures on investments. No doubt TPR had ،ped to include these
requirements in the new General Code. However, as the final version
remains unpublished, TPR appears to have been forced to include an
update to its existing material to remind trustees and other
pension professionals about these new requirements and to give them
sufficient time to prepare.

The Chancellor’s Mansion House s،ch and the array of
accompanying DWP publications also concentrated on measures to
increase pension scheme investment in “،uctive
finance”. The Government must be ،ping that the public
disclosure of ،et allocations and trustee policies relating to
investment in illiquid ،ets will focus trustees’ minds and,
in turn, lead to an increase in such investments.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice s،uld be sought
about your specific cir،stances.

POPULAR ARTICLES ON: Employment and HR from UK

Mock Investigation 2023 (Video)

Travers Smith LLP

In May 2023, we ،sted our inaugural Mock investigation event. Following a workplace investigation into allegations of bullying by a senior manager, the event considered…

Job Application By P،ne – A Reasonable Adjustment?

Herrington Carmichael

The Employment Appeal Tribunal (EAT) judgment in AECOM v Mr Mallon demonstrates the importance of employers considering all options for reasonable adjustments, including for job applicants.