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

Andrew Dodd William Compton 26 January 2018

TPR Issues and challenges: Clearer, Quicker, Tougher

TPR Future – Phase 1

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Clearer, Quicker, Tougher

• Clarifying out identity
• Setting clear expectations
• Improving our regulatory oversight
• Using a wider range of regulatory interventions
• Being more efficient and effective

Agenda

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• 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

Clearer – ‘formal’ guidance for DB schemes

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July 2014 August 2015 December 2015 March 2017 Code of practice: Funding defined benefits DB funding regulatory and enforcement policy DB regulatory strategy Assessing and monitoring the employer covenant Integrated risk management DB investments

Clearer - other recent ‘guidance’ for DB schemes

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July 2016 December 2016 May 2017 June 2017 September 2017 Statement: Brexit vote – comment on market volatility S89 report: Halcrow Pension Scheme S89 report: Monarch Airlines Annual funding statement on DB Funding S89 reports: Hoover, Coats Group, BHS S89 report: Nortel Networks Discussion Topic: Are reports with real life examples a useful addition to our principle- based guidance?

Clearer – DB Annual Funding Statement 2017

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We are likely to intervene where we believe that schemes are not being treated fairly. We expect trustees of stressed schemes to reach the best possible funding outcome. Trustees should take appropriate action depending upon the group they fall into.... .

Clearer – Casework

Framework for what “good” looks like Clear on initial concerns and expectations More directive

• n contentious

cases

Quicker – Efficiency and Effectiveness

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Discussion Topic: What changes have you seen in your engagements with TPR over the past 12 months? 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

Tougher

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Spot checks nationwide

– Auto enrolment

Successfully prosecuted employers Tough against wilful non compliance

Tougher – DC and DB

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Greater use of our powers Higher expectations around basic scheme governance Criminal proceedings if appropriate

DB Small Schemes Strategy

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• Set out our expectations in

advance

• Questionnaire

Engagement

• Review valuation documents
• Review questionnaire

Submission

• No action
• Further engagement/

enforcement

Decision

Discussion Topic: Your views on this engagement strategy?

Summary

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Clearer, Quicker, Tougher

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.