The Pensions Regulator (TPR) will be more proactive in its approach to monitoring workplace pension schemes to help safeguard member benefits.
From next month, an increasing number of schemes will face greater scrutiny from TPR. The change follows a major review of the regulator’s work. As part of this, it has unveiled a new range of interventions to address risks sooner, clearly set out its expectations and take action where necessary.
Chief Executive Lesley Titcomb said: “Following a complete review of our entire approach to regulation, we are now implementing a radical shake-up of the way we regulate to embed our pledge to be clearer, quicker and tougher.
“Schemes across all sectors, whatever their size, can expect the volume and frequency of their interactions with us to increase so that potential risks to pension savers are identified early and put right before it becomes necessary for us to use the full force of our enforcement powers.”
She added that an important element of its approach will be the broader use of communication channels to drive behavioural change by promoting greater understanding of compliance.
TPR will introduce dedicated, one-to-one supervision for 25 of the biggest defined contribution (DC), defined benefit (DB) and public service pension schemes from next month, with this approach being rolled out to more than 60 schemes over the next year.
It will maintain ongoing contact with these schemes and in some cases their sponsoring employers, reflecting their size and strategic importance within the pensions landscape.
In addition to one-to-one contact, higher volume supervisory approaches are also being introduced from next month to address risks and influence behaviours in a broader group of schemes.
