It is food for thought as the Pensions Regulator (TPR) published its Annual Report and Accounts for 2019-20 (Report). In a period of the impact of COVID-19 and impact on the economy, there is still ‘business as usual’ with:
- Auto enrolment completed and over 10 million people in a qualifying scheme
- 38 master trusts have been authorised with 16 million members and £38.5 billion of assets invested
- Deficit repair contributions are up £11.4 billion and average length of recovery plans re-submitted to TPR falling from 7.5 years to 7.1 years.
TPR stated (page 22 of the Report) that it had achieved 12 of its 18 KPIs in year 2019-2020. Giving itself:
5 ‘ambers’ rather than ‘greens’ on
- We will extend our supervision approach across more schemes
- We will implement five new regulatory initiatives based on our core regulatory assessment
- We will establish our website content strategy and framework for all our publications
- We will develop and design our approach to deliver the required data standards for the Pensions Dashboard
- We will commence the design and implementation of new systems to support our regulatory functions
1 ‘red’ rather than ‘green’ on
- We will have high employee engagement
Details can be found in: The Pensions Regulator’s Annual Report and Accounts 2019-2020
As a reminder – TPR has 6 statutory objectives:
- To protect the benefits of members of occupational pension schemes
- To protect the benefits of members of personal pension schemes (where there is a direct payment arrangement)
- To promote and to improve understanding of the good administration of work-based pension schemes
- To reduce the risk of situations arising which may lead to compensation being payable from the Pension Protection Fund (PPF)
- To maximise employer compliance and employer duties and the employment safeguards introduced by the Pensions Act 2008
- In relation to DB scheme funding, to minimise any adverse impact on the sustainable growth of an employer
It seems a particularly good achievement especially when the COVID-19 crisis is considered. TPR has responded with vigour and it is worth checking out its web pages on what to focus on here.
If you would like to receive monthly updates on pension news, audits and assurance, subscribe to our newsletter here.