Clearer, Quicker, Tougher Andrew Dodd William Compton 26 January - PowerPoint PPT Presentation

TPR Issues and challenges: Clearer, Quicker, Tougher Andrew Dodd William Compton 26 January 2018

TPR Future – Phase 1 • Clarifying out identity • Setting clear expectations • Improving our regulatory oversight • Using a wider range of regulatory interventions • Being more efficient and effective Clearer, Quicker, Tougher This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Agenda • Clearer – Guidance – DB Annual Funding Statement – Casework • Quicker – Efficiency and Effectiveness • Tougher – Enforcement – auto-enrolment – Enforcement – DB & DC schemes – DB Small Scheme Strategy Discussion Topics throughout session This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Clearer – ‘formal’ guidance for DB schemes July 2014 Code of practice: Funding defined benefits DB funding regulatory and enforcement policy DB regulatory strategy August 2015 Assessing and monitoring the employer covenant December 2015 Integrated risk management March 2017 DB investments This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Clearer - other recent ‘guidance’ for DB schemes Statement: Brexit vote – comment on market volatility July 2016 S89 report: Halcrow Pension Scheme Discussion Topic: Are reports with December 2016 S89 report: Monarch Airlines real life examples a useful addition to our principle- based guidance? May 2017 Annual funding statement on DB Funding June 2017 S89 reports: Hoover, Coats Group, BHS September 2017 S89 report: Nortel Networks This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Clearer – DB Annual Funding Statement 2017 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.

Clearer – Casework Framework for what “good” looks like More directive Clear on initial on contentious concerns and cases expectations

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 Discussion Topic: What changes have you seen in your engagements with TPR over the past 12 months? This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

– Auto enrolment Tougher Tough against wilful non compliance Successfully prosecuted employers Spot checks nationwide This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Tougher – DC and DB Greater use of our powers Criminal proceedings if appropriate Higher expectations around basic scheme governance This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

DB Small Schemes Strategy • Set out our expectations in Engagement advance • Questionnaire • Review valuation documents Submission • Review questionnaire • No action Decision • Further engagement/ enforcement Discussion Topic: Your views on this engagement strategy? This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Summary Clearer, Quicker, Tougher This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.

Questions? Discussion points: • Are reports with real life examples a useful addition to our principle-based guidance? • What changes have you seen in your engagements with TPR over the past 12 months? • Your views on the proposed DB small scheme engagement strategy? This presentation remains the property of The Pensions Regulator. The content of these slides should not be reproduced without express permission.