The Pensions Regulator and Pension Protection Fund are proposing changes to the way DB schemes submit information annually on their investment strategy and assets held.
The two bodies are proposing a new tiered approach, which will require more information from larger schemes, but should not unduly affect smaller entities.
The tiered system will mean smaller schemes see only minor changes to the current information they supply, but larger schemes will have to provide more granular data. Under these proposals the very largest scheme will also have to carry out a bespoke stress calculation – which is required under existing PPF levy rules.
TPR uses this information on investment strategies and asset classes to help measure investment risk and the PPF uses it to help calculate the PPF levy. TPR says these changes should allow it to take a more proportionate approach to regulation, reflecting the fact that smaller schemes may have more limited resources and simpler investment strategies.
Both parties are now seeking industry views on these proposed changes via a joint consultation exercise. The consultation closes on June 10 2021.