On the go: A review of the Pensions Regulator has recommended that the government consider extending the watchdog’s powers to enable them to make rules in specific circumstances.
In July 2018, the Department for Work and Pensions commissioned former Pension Wise chief officer Jamey Johnson to lead the Tailored Review of The Pensions Regulator on its behalf.
It found the regulator to be a "well-run organisation" and highlighted the success of the watchdog’s implementation of auto-enrolment, as well as the progress it is making in boosting standards of administration and governance in public sector schemes.
It has also made several recommendations. In addition to suggesting the DWP consider the benefits of extending the watchdog’s powers to enable TPR to better achieve its goal of being clearer, quicker and tougher, it recommends that the regulator continue collaborating with other organisations and improving its information sharing capabilities.
The review report states that the regulator should ensure it is proactively monitoring delivery against its joint strategy with the Financial Conduct Authority.
It also concluded that the FCA and TPR “are distinct in their missions, and would not benefit from being merged into one body”.
In terms of governance, it recommends that the regulator “seek to add a board member with experience in organisational and digital transformation at the next available opportunity”, adding that this could also be an opportunity to increase the ethnic diversity of its board members.
Under operational effectiveness, the watchdog has been advised to seek improved methods of gathering data to monitor pension plans to reduce the burden on schemes and employers. It has also been advised to put in place a plan to have a workforce whose diversity more closely reflects the population it serves.
A TPR spokesperson said: “We welcome this review, which finds that we are a well-run and effective organisation. The report highlights the success of the automatic enrolment programme and recognises we are making changes to better protect pension savers by becoming clearer, quicker and tougher.
The spokesperson added: “We note the review’s recommendations, some of which have already been achieved through our change programme and by working closely with DWP, our partners and stakeholders. We always strive to improve even further by consulting with our regulated community on new plans and by liaising with government on new legislation.”
