Pensions Regulator announces tougher approach

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The Pensions Regulator (TPR) has announced that schemes will face greater regulatory scrutiny under new sweeping plans.  It is anticipated that TPR’s new logo and new approach will result in increased scrutiny – and intervention – for pension schemes.
 
“Initially, a number of schemes will have dedicated one-to-one contacts and TPR’s intention is that this greater level of engagement will ultimately affect all schemes, particularly defined contribution schemes which have to date had rather less intervention,” explains Vikki Massarano, Partner at ARC Pensions Law (https://arcpensionslaw.com).
 
“We are already seeing evidence of TPR’s tougher stance on scheme valuations and trustees and employers should expect this to continue.  What is not clear is whether additional resource will be available to allow TPR to strengthen its approach or whether other areas will see reduced focus as resource is simply redirected.”
 
“Clearly one driver behind this new tougher approach is the criticism TPR received about its involvement in a number of high profile corporate failures,” comments Massarano.  “The new approach does not necessarily mean TPR will use its enforcement powers more often – it expects most of the new engagement to lead to voluntary compliance – but the logical conclusion is that, if its new tougher stance is to have meaning, TPR will have to be prepared to use its powers, whether existing or to be granted to it.”