In a significant shift in how it protects savers, The Pensions Regulator (TPR) will increasingly scrutinise greater number of workplace pension schemes from October. The Regulator will be working proactively with more pension schemes through a variety of new interventions that are designed to address risks sooner and take action where necessary. The changes reflect the major changes that are occurring in the economic, political and pensions worlds and result from The Pension Regulator's review of the way it does regulation.
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."
"Our new model is flexible – we will take a systematic approach to set out our expectations and will respond swiftly to emerging risks, taking tough action where necessary to tackle bad behaviour, including by corporate entities."
"An important element of our new approach will be the use of a broader range of communication channels to drive behavioural change by promoting greater understanding of what schemes need to do in order to comply with the law and demonstrate high standards. This was a vital ingredient in the success of automatic enrolment amongst employers and we look forward to developing a closer relationship with schemes, both large and small. "
For 25 of the largest defined contribution workplace pension schemes, they will have one-to-one supervision, with this approach being rolled out to more than 50 schemes over the next 12 months.
As well as one-to-one contact, a broader group of schemes will also have a higher volume of supervision, with a particular concentration on whether schemes are being treated fairly when it comes to dividends to shareholders.
More information can be found in The Pension Regulator's latest update