The Pensions Regulator has laid out its corporate plan for the next three years, in which it sets out plans to review its approach to ensuring high standards of governance and administration for schemes. It will also seek to improve the knowledge and understanding of trustees.
The corporate plan states the regulator's focus will be to support "the adequate funding and security of DB schemes to achieve good member outcomes".
Auto-enrolment is still front of mind for the regulator. The plan states the budget to deal with increased numbers of employers enrolling staff will go up from nearly £30m in 2013/2014 to more than £40m in 2014/2015.
It is expected that auto-enrolment will peak with small employers in Q4 2016/2017. As many of these schemes may be helped by independent advisers, the regulator stated: "To help ensure that employers receive well-informed and comprehensive advice as well as appropriate products, we are working with the external adviser market to improve knowledge and understanding around the requirements on employers."
On the DB side the regulator will encourage trustees and employers to work together.
The corporate plan states the regulator's focus will be to support "the adequate funding and security of DB schemes to achieve good member outcomes".
Auto-enrolment is still front of mind for the regulator. The plan states the budget to deal with increased numbers of employers enrolling staff will go up from nearly £30m in 2013/2014 to more than £40m in 2014/2015.
Source: The Pensions Regulator
It is expected that auto-enrolment will peak with small employers in Q4 2016/2017. As many of these schemes may be helped by independent advisers, the regulator stated: "To help ensure that employers receive well-informed and comprehensive advice as well as appropriate products, we are working with the external adviser market to improve knowledge and understanding around the requirements on employers."
On the DB side the regulator will encourage trustees and employers to work together.
Source: The Pensions Regulator
The regulator also set out its expectations for the future path of DB cashflows.
Source: The Pensions Regulator
The revised code of practice and regulatory strategy and policy for DB schemes is expected this summer. The corporate plan states: “The code sets out the standards and practices we expect from DB scheme trustees.”
The regulator will also consult on a revised trustee knowledge and understanding code of practice and update the Trustee Toolkit.
At our inaugural Leadership of DC Pensions summit, Andrew Warwick-Thompson, the regulator’s executive director for defined contribution, told delegates the regulator is considering requiring formal qualifications for independent trustees and trustee chairs, in order to raise governance standards.
