Anna Rogers comments in Pensions Expert on the impacts of a potential Pension Reform Bill
In its latest annual report, TPR announced that it has had positive discussions with the DWP regarding a potential new Pension Reform Bill, as the regulator seeks to obtain statutory powers regarding its oversight of administrators and professional trustees.
Commenting in Pensions Expert, senior partner Anna Rogers discussed industry concerns surrounding the Bill, stating: “It is doubtful that most pension schemes, or the employers who fund them, will feel that life will be improved by yet more pensions reform – the burden of reform currently feels rather heavy.
Anna did go on to praise TPR’s approach, noting: “It’s heartening to see TPR taking issues about DB administration and data seriously, compared to the focus in years gone by on funding above all else – data needs to improve but it’s not so easy to achieve it. It’s encouraging to see that TPR is engaging with administrators about the financial sustainability of their businesses. Investment is needed but it seems the buyer side is strong in this market when it comes to driving down costs.
“Investment could lead to lower costs and better quality administration but there is a question as to how that investment is to be funded. TPR has existing powers to require information or just to ask questions, and the annual scheme return can be quite a powerful tool. We would like to see greater focus on legal input.
“Trustees often have a finance background, and they are good people who want good member outcomes. However, they can tend to take an interest predominantly in the assets rather than the liabilities of their scheme. Members may not know that they aren’t getting good outcomes, and benefit entitlements are opaque – there is an asymmetry of information. AI may change that.
“I hope that TPR will be successful in pushing for a Pension Reform Bill and will be able to find ways, using existing powers or new powers, to raise the standard of governance in DB schemes. It’s hard to resist the conclusion that it will end in regulation of professional pension trustees.”
Read Anna’s comments in Pensions Expert, here.
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