TPRs future small DB scheme strategy and other developments Jenny - PowerPoint PPT Presentation

TPR’s future small DB scheme strategy and other developments Jenny Davie Case Management Team Leader Steven Wilkinson Actuary 25 January 2018

TPR Future programme This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Transforming the way we work Publication July 2017 This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

The first phase of the TPR Future programme provided valuable insight which we have used to shape our approach going forward This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Questions? This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Small DB schemes – our experience Inappropriate TPs and/or investments Initial review Questions over DRCs/RP length Conflicts of interest Poor governance Detailed case engagement Lack of understanding of covenant Limited investment/actuarial advice Poor TKU and a lack of engagement Overarching issue? from trustees and employers This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Small DB scheme strategy – ‘consultation’ We met with over 60 Broad agreement with the issues we actuaries in Autumn 2017 have encountered Perception that TPR doesn’t engage with small schemes • Intervene more, take action when warranted and Attendees publically demonstrate what we have done wanted TPR • Restart including comments with closure letters to: • Find a form of engagement that is between no action and a full blown case This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Small DB scheme strategy - outline • Set out our expectations in Engagement advance • Questionnaire • Review valuation Submission documents • Review questionnaire • No action Decision • Further engagement/enforcement Clearer, Quicker, Tougher This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Being clearer - AFS 2017 messages Trustees should take appropriate action depending upon the group they fall into.... . We expect trustees of stressed schemes to reach the best possible funding outcome. We are likely to intervene where we believe that schemes are not being treated fairly. This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Being quicker – efficiency and effectiveness KPI 2.2: within nine months of the valuation submission date, we have closed the case or opened a formal investigation into use of powers . Streamlining the use of our powers Reviewing how we manage cases This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Being tougher - late completion of valuations We have fined trustees and expect valuations to be completed on time Fine unlikely if reasons for no agreement are genuine We don’t want trustees to agree something inappropriate Threat of a fine being used by some employers and their advisers to pressure trustees to agree This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Questions? This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.