As change ripples through the pensions sector, Gillian Graham shines a light on some of the key transformations companies, pension schemes, and trustees could expect in the coming year.

1. The general code of practice: Pension schemes will need to prepare for the much-anticipated arrival of The Pensions Regulator’s (TPR) general code of practice which will be introduced from 27 March 2024. Click here to read more about our views on the general code.
2. Professional trusteeship mandate: Could we see the need for professional trustees to be appointed to all schemes? This would mark an industry-wide shift if we do – and drive the need for the recruitment of even more professional trustees.  
3. EDI focus: We think TPR will advance its equality, diversity, and inclusion (EDI) strategy, gathering more EDI data and perhaps even mandating evidence of embedded EDI practices from all schemes by the year-end. Taking a proactive approach to integrating EDI principles into your scheme’s DNA will help you stay ahead of the curve.
4. Emulating Australian super funds: With Australian super funds typically outperforming UK pension funds, we think defined contribution (DC) master trusts are likely to be taking lessons from ‘Down Under,’ DC Master Trusts will be wise to mirror their success by embracing cutting-edge technology and refining their investment strategies. Borrowing best practices from across the globe could unlock significant value for members.
5. TPR and FCA merger: Could a regulatory revamp also be on the cards? Could we see a move towards the merger of TPR and the Financial Conduct Authority (FCA)? Having one unified body could ensure a more streamlined and consistent regulatory landscape for the pensions industry.
6. Refined value for money (VFM) framework: If this merger goes ahead, we are likely to see clearer and more targeted VFM frameworks.
7. Evolution of chair’s statements: In 2024, we think chair’s statements could become shorter or non-mandatory, changing reporting requirements.
8. More environmental and climate- based decision making and focus for all schemes: Across all pension schemes, we predict greater focus on incorporating environmental, social, and corporate governance as well as the climate and nature related taskforces.
9. Single statutory objective: 2024 could witness the introduction of a single statutory objective for DC retirement provision, encompassing accumulation and decumulation, and a targeted retirement income.
10. Technological integration: We believe there will be increased reliance on technology, potentially leveraging applications to ensure more streamlined pension-related processes.

With the landscape shifting rapidly, the value of professional trustees will become even more apparent. Appointing experienced professionals to guide your scheme through the uncertainties of 2024 can provide invaluable stability and strategic direction.

At Vidett, we understand the challenges and opportunities that lie ahead. We are committed to partnering with schemes throughout 2024, providing expert guidance and unwavering support as we navigate this transformative landscape together.

If you have any questions, or want to find out more on these topics, please get in touch with the author Gillian Graham.

Please note this originally featured in Always Finance News on the 15th January 2024.