The Pension Regulator (TPR) reported that it came close to meeting 19 out of its 23 key performance indicators (KPIs).
TPR’s most recent annual report and accounts for 2022-2023 provides an overview of TPR’s performance and highlights its efforts towards effective regulatory oversight and the safeguarding of pension schemes.
Notably, the Department for Work and Pensions (DWP) rescheduled or reviewed three initiatives that required legislative changes, namely the DB funding code, the general code, and pensions dashboards.
TPR added that the only KPI that was not met pertained to service levels at TPR’s call centre for a duration of four months. But starting from August 2022, the service levels have recovered and are now consistently rated as ‘green’ or above target.
The report also focused on other highlights including setting trustee expectations and advancing efforts to ensure pensions offer good value for money (VFM), and guidance on emerging areas such as environmental social governance, equality, diversity, and inclusion.
Additionally, TPR issued comprehensive directives on liability driven investments (LDI) in November 2022, followed by an update in April.
TPR also evaluated and authorised the UK’s first collective defined contribution scheme and a new master trust.
Additionally, TPR’s interventions in schemes increased from 16 per cent to 22 per cent compared to the previous year.
TPR published a plan in the ongoing fight against pension scams, and 601 organisations have already signed the pledge to do so or made commitments to its tenets.
Furthermore, TPR’s joint consultation on a value for money (VFM) framework for defined contribution schemes received a response with over 80 submissions.
TPR chief executive Nausicaa Delfas, who took up her role in April 2023, said:
“We are witnessing a pivotal moment in pensions with a steady but inevitable move from defined benefit to defined contribution arrangements, and the consequent transfer of risk from employer to saver.
“Right across the pensions market, TPR plays an integral role in protecting savers’ money, enhancing the pensions system, and supporting innovation in the interests of savers”.
TPR chair Sarah Smart says: “In another action-packed year, we have been steadfast in our goal of protecting and enhancing retirement savings, against the backdrop of a volatile economy and unpredictable world events.
“Working closely with government and our regulatory family has never been more important — whether in the context of giving trustees clear advice on LDI, funding of defined benefit schemes, fighting scams or ensuring the industry is ready for the arrival of pension dashboards.
“The past year also saw us focus on two new areas — the value in having a diverse trustee board and the importance of taking climate and sustainability into account when making investment decisions.”
