The Pensions Regulator (TPR) has published findings from a year-long review of 15 pension administrators and set out plans for a new administration strategy, updated trustee guidance and ongoing engagement with the industry.
The review focused on financial sustainability, technology and innovation, risk and change management and cyber resilience and highlighted continued challenges for administrators around changing regulatory requirements, technology upgrades, staffing, data quality and cyber security.
The review found that many administrators are investing in technology, automation, and workforce development, with examples including modernised systems, AI tools, enhanced member portals, and change teams.
But the review highlighted gaps in legacy systems, data quality, cyber resilience, and the capacity to meet evolving member expectations, highlighting the importance of investment and collaboration with trustees to improve outcomes for savers.
In response, TPR says it will develop a new strategy for scheme administration, refresh its guidance for trustees, maintain direct engagement with administrators, promote collaboration between trustees and administrators, participate in industry working groups and advise the government on future legislation.
TPR advises trustees and administrators to treat pension administration as a strategic priority, invest in technology and skills, maintain accurate data, strengthen governance and cyber resilience and work collaboratively to improve service and outcomes for savers.
TPR interim executive director of market oversight Julian Lyne says: “Administration remains central to good saver outcomes and so we welcome these improvements. But more work is needed to reach the standards we expect.
“Investing in technology and new skills, improving data, pushing for better governance and transparency, and strengthening resilience to cyber-attacks, should help reduce risks and improve outcomes for savers.
“We expect administrators and trustees to reflect on these findings and work together to identify ways to improve administrative practices to better serve savers. As the market evolves, trustees must take greater responsibility and accountability for ensuring those improvements happen.”
TPR interim executive director of market oversight Julian Lyne says: “Administration remains central to good saver outcomes and so we welcome these improvements. But more work is needed to reach the standards we expect.
“Investing in technology and new skills, improving data, pushing for better governance and transparency, and strengthening resilience to cyber-attacks should help reduce risks and improve outcomes for savers.
“We expect administrators and trustees to reflect on these findings and work together to identify ways to improve administrative practices to better serve savers. As the market evolves, trustees must take greater responsibility and accountability for ensuring those improvements happen.”
Pasa chair David Fairs says: “TPR’s report rightly shines a spotlight on administration, an area too often undervalued despite its direct impact on saver outcomes. The themes of financial resilience, technology, risk, and cyber security are ones PASA has been focused on for some time. We welcome TPR’s recognition sustained investment in administration, people, and technology is essential, and we continue to play our part in supporting this shift.
“Our new Careers & Development Working Group is an important step in professionalising administration as a career path, while Accreditation provides a clear signal of strong compliance with the General Code. We look forward to working closely with TPR, trustees and administrators to continue driving improvements. Ultimately, good administration underpins trust in pensions and that’s what matters most for savers.”
Pasa president Kim Gubler says: “We’re seeing encouraging improvements in administration across the market, but those improvements need to be more consistent and crucially, they need to be maintained. Savers deserve a reliable and resilient service, and it’s essential administration standards don’t just improve in response to regulatory pressure but become embedded as part of day-to-day best practice.”
Brightwell head of admin consulting Michelle Esterkin says: “Strong administration is the backbone of the pension system, integral to effective scheme management and member satisfaction but it has suffered from lack of investment.
“With increasing regulatory demands, technological transformation, pensions dashboards and rising member expectations, administrators have never been more important.
“The message is clear, investing in modern technology is not a nice to have. It is an essential prerequisite for strong administration, good customer service and a great member experience. And that is something that trustees of all schemes should be striving for.”
