With the new General Code of Practice, The Pensions Regulator (TPR) mandated the need for an Effective System of Governance (ESOG) as a key part of pension scheme management.In this article, we explore the ESOG, detailing what you need to know, and how it impacts the governance of pension schemes.Understanding the Effective System of Governance (ESOG)At the heart of the Effective System of Governance is a further commitment to enhancing the accountability and effectiveness of pension scheme management.The ESOG encompasses a set of principles and practices aimed at ensuring that pension schemes are managed with the utmost diligence, transparency, and in accordance with the best interests of the beneficiaries.Further, the General Code of Practice highlights that a scheme’s ESOG be proportionate to the size, nature, and complexity of the activities of the pension scheme.Plus, that the ESOG itself needs to be reviewed for efficiency, effectiveness, and efficacy at least every three years....
