Survey: Defined contribution trust-based pension schemes research

This report summarises results from The Pension Regulator’s (TPR’s) annual survey of trust-based occupational defined contribution (DC) schemes. It considers how well DC schemes are meeting key governance requirements, and the extent to which schemes are meeting TPR’s expectations.

Key findings

• More than half of DC members were in schemes meeting all their key governance requirements (KGRs), which is an increase from 32 per cent in 2017. 
• Since 2017 there has been an increase in the proportion of members in schemes meeting each of the five KGRs.
• The extent to which the KGRs were met increased with scheme size, with around half of micro and small schemes not meeting any of the KGRs that applied to them. However, the overall proportion that did not meet any KGRs was lower than in 2017.
• Most medium schemes, large schemes and master trusts met the KGR on trustee knowledge and understanding, but assessing value for members was challenging for all sizes of scheme.
• The proportion of schemes meeting the expectations set out in the DC code tended to increase with scheme size, with investment governance and administration the weakest areas for most schemes.

The survey comprised quantitative interviews with 441 single-employer schemes and 24 relevant multi-employer schemes, commonly known as ‘master trusts’.