A number of companies within the Group operate defined contribution (DC) pension schemes with one company operating a defined benefit scheme.
The Group’s defined benefit scheme is the Memory Lane Cakes Pension Scheme (“Scheme”) which is a separately administered plan. The trustees have appointed advisers to provide investment advice and fund managers to manage the Scheme’s assets. The investment managers will ensure that suitable internal operating procedures are in place to control individuals making investments for the Scheme.
The majority of the Scheme’s liabilities are linked to price or wage inflation. The investment policy is to commit a proportion of the assets in a strategy specifically targeting outperformance versus price inflation over long periods.
On the basis of continued long-term support by the Principal Employer, Memory Lane Cakes, the Trustees will continue to measure and manage the risks of the Scheme’s long-term investment strategy against the liabilities calculated by the Scheme Actuary as part of the triennial valuation.
The Pensions Regulator has issued a DC code of practice and regulatory guidance to address the quality features that are expected to be present in all occupational DC trust-based schemes that provide money purchase benefits and present best practice for contract based Group Personal Pension plans. These are underpinned by the 31 DC quality features -standards of governance and administration that a Pension Compliance Team is expected to attain.
The DC code focuses on quality features that are related to the requirements of pensions legislation and the DC regulatory guidance covers those features that reflect their view of good practice.
The key points are as follows:
- The Pension Compliance Team is expected to assess its scheme against the DC code and regulatory guidance on an ongoing basis
- This assessment should be used as an opportunity to review and refresh systems and controls, monitor risks and prioritise actions.
The Group works with pension scheme advisers to address the assessment of the DC schemes and to implement action plans.