Ian Chapman-Curry
Legal Director
PSL legal director
Balados
7
Episode four of Pensions in 30 Podcasts provides an overview of The Pensions Regulator, covering the background, its objectives and the powers it has.
TPR was established on 6 April 2005, replacing The Occupational Pensions Regulatory Authority (OPRA). It was introduced in response to reports that found that OPRA had inadequate powers in respect of matters of compliance, gathering information and other issues.
As a result, TPR has a broader range of powers than OPRA and has developed a risk-based approach to focus its activities and protect members from the greatest risks.
From April 2015, TPR's remit expanded to include regulation of the governance and administration of public service pension schemes as well.
The Department for Work and Pensions (DWP) has recently consulted on the need for members to have greater protection by a stronger more pro-active TPR and enhanced powers for trustees.
TPR's objectives are:
TPR's powers fall into three broad categories:
TPR collects data on pension schemes via the annual scheme return. Since 6 April 2015, trustees of defined contribution schemes have also been required meet certain TPR-imposed governance standards including submitting an annual chair's statement. TPR also receives reports of significant breaches of the law from 'whistle-blowers', and reports of notifiable events from trustees and employers.
TPR's powers include the ability to:
TPR is responsible for regulating the funding of defined benefit pension schemes. It has issued a number of statements to explain the approach it takes. TPR may intervene in a scheme valuation if it considers that a funding plan is based on imprudent or inappropriate assumptions.
TPR has power to act against employers' attempts to avoid pension obligations by issuing a Contribution Notice or Financial Support Direction.
TPR regularly publishes reports on the considerations given by it to the exercise of its powers and functions including those mentioned above.
TPR does not and cannot regulate all schemes directly. It has developed a range of regulatory approaches for influencing behaviour, such as by publishing codes of practice, developing an online toolkit for trustees and publishing strategy and research publications. TPR's stated approach is to educate, enable and enforce.
TPR is careful to not set a 'standard' approach for all schemes to follow as it is important for individual schemes to focus on their specific needs. However TPR's objectives have been set with the aim of helping scheme employers and trustees meet their fiduciary and statutory obligations.
The DWP has recently consulted on whether members need further protection delivered by a stronger more proactive TPR. Suggestions consulted on included:
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