View more on these topics

Pensions regulator warns sub-scale schemes offer bad value to members

Pension-pot-700.jpg

The Pensions Regulator has said that tackling “sub-scale” schemes that offer bad value for money is one of its top priorities over the next three years.

In its corporate plan, which looks ahead to 2020, TPR lists sub-scale schemes at the top of its risks section.

TPR says that economies of scale are often needed to generate benefits for consumers.

The plan reads: “The continuance of sub-scale defined benefit and defined contribution schemes, predominantly, but not exclusively a feature of the small and medium enterprise market, is likely to give rise to the risk of poor outcomes for members and sponsors. Both groups will suffer detriment, principally as the result of poor value for money, if they cannot benefit from scale.

“As the landscape evolves, so do the risks faced by the pensions industry and by us as a regulator. We will be responding to these with the work outlined in our priorities.”

The other principal risks TPR has identified include poor standards of stewardship, disorderly scheme failures, poor data integrity and security, and uncertain investment decisions.

The plan also confirms an increase in budget for TPR for the 2017/18 financial year.

TPR spent £76.2m in 2016/17, £3m under its projected £79.3m. This is set to rise to £84m next year, as staff salaries rise from £35.5m to £42.7m.

Recommended

4

Pensions regulator agrees £363m settlement with ex-BHS boss Green

The Pensions Regulator has reached a £363m settlement with former BHS boss Philip Green to plug the deficit in the collapsed retail chain’s pension scheme. The funds will go towards a new, independent pension scheme will offer the same pension as when employees started with BHS. 19,000 members will be entitled to higher benefits than […]

Payment-Fine-Currency-Money-700.jpg
1

Pensions regulator proposes ‘extreme’ ban on new SSASs

A proposal from The Pensions Regulator to ban pension transfers into small self-administered schemes and to consider stopping new SSAS arrangements being set up have been branded “extreme” and “ill considered”. In a blog on TPR’s website, regulatory policy executive director Andrew Warwick-Thompson suggests three measures to curb pension scamming, including a ban on SSASs. Warwick-Thompson says: […]

Pension savings-2015

Pension tax relief: parked (for the moment)

The national news agenda has been dominated by pension issues this month. For those that missed it (and there cannot have been many given that this was the lead story in spoken and written media), the Chancellor announced a decision to make no decision on pension tax relief in his 16 March 2016 Budget speech. To […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment