Own Risk Assessments: what trustees need to do before the 2026 deadline

With the General Code now in force, trustees of schemes with more than 100 members must complete their first Own Risk Assessment (ORA) within 12 months of the end of the first scheme year beginning after 28 March 2024. For many schemes with a 31 March year‑end, this means the first ORA is due by the end of March 2026. That's under two months away!

The Pension Regulator (TPR) has acknowledged the ORA is a “substantial process” and it is clear this is not intended to be a simple extension of the risk register. The ORA must demonstrate how the scheme’s effective system of governance (ESOG) is operating in practice and whether it is working effectively across governance, administration, investment, and risk management functions.

Importantly, not everything needs to be considered at once. The ORA should be carried out in proportion to the size, nature and complexity of your scheme. If a relevant and proportionate assessment has taken place in the period leading up to the ORA, the governing body is not required to repeat that assessment. The ORA can be an index of collated assessments rather than a singular report. 

Below, we outline three key themes trustees should have front of mind, and a practical tip for those getting started or planning their next ORA.

1. The ORA is more than an updated risk register

The General Code requires trustees to examine and document how well their ESOG is functioning, including whether each relevant policy and procedure is operating effectively in practice. This involves:

• evaluating the operation of governance policies, internal controls, investment governance and administration processes;
• assessing how risks are identified, mitigated, monitored and integrated into decision-making; and
• recording actions that must be taken before the next ORA cycle.

The Pensions UK guidance reinforces this focus on real‑world operation, noting policies must reflect how the governing body actually works and must be kept current as circumstances evolve. This means trustees will need to look beyond the risk register and consider whether the scheme’s underlying policies, controls and practices are truly fit for purpose. 

2. Trustees must meaningfully evaluate how their ESOG works in practice

TPR has been clear the ORA is not a tick‑box exercise. Trustees must meaningfully assess:

• how governance policies and risk management processes operate day to day;
• whether investment governance is robust, including climate‑related, environmental and social risks, asset liquidity, and protection of member benefits; and
• whether administration processes, financial transactions and record keeping are effective.

For many schemes this will require gathering information from multiple sources (advisers, administrators, investment consultants and internal governance documents) to test how the ESOG functions as a whole. The General Code emphasises proportionality but also recognises some schemes may need to expand their existing assessments to meet expectations. 

3. If the ORA has caught you off guard, put a structured plan in place now

For some trustee boards, the ORA requirement will feel new or unexpectedly time consuming. If preparations have not yet started, the key is to put in place a proportionate ORA in time for the first deadline in 2026, and then implement a realistic, structured plan across the next three years (for the next ORA), including:

• identifying your scheme’s statutory deadline;
• ensuring your ESOG is complete and up to date;
• carrying out a gap analysis of existing governance frameworks;
• agreeing who will lead the ORA (trustee sub‑committee, risk function or external adviser); and
• scheduling annual monitoring and interim reviews.

TPR expects ongoing monitoring of the ORA - both between and ahead of the triennial full assessments - particularly where material changes occur such as employer transactions, scheme mergers or significant changes in administration arrangements. 

How Burges Salmon can help

We have experience in preparing practical, proportionate ORAs and can help trustee boards navigate the process efficiently. We can assist with:

• preparing or reviewing your scheme’s ORA;
• advising on ESOG documentation and governance frameworks;
• identifying and prioritising governance actions emerging from the ORA; and
• supporting trustee training and ongoing monitoring.

Practical tip - start by mapping your ESOG. Before drafting begins, list every document, policy, procedure and adviser input forming part of your governance framework. Identify gaps early. This makes the ORA faster to produce, easier to update, and will demonstrate good governance. 

We have a checklist to help governing bodies plan their ORAs and wider guidance available to assist with drafting an ORA on request. 

If you have questions about your scheme's ORA, please get in touch with Susannah Young or your usual Burges Salmon contact.

This post was written by Ben Jonsmyth and Susannah Young.

Before drafting begins, list every document, policy, procedure and adviser input that forms part of your governance framework. Identify gaps early. This makes the ORA faster to produce, easier to update, and will demonstrate good governance.