TPRs future small DB scheme strategy and other developments Jenny - - PowerPoint PPT Presentation

TPR’s future small DB scheme strategy and other developments

Jenny Davie Case Management Team Leader Steven Wilkinson Actuary 25 January 2018

TPR Future programme

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Transforming the way we work Publication July 2017

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The first phase of the TPR Future programme provided valuable insight which we have used to shape our approach going forward

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Questions?

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Small DB schemes – our experience

Inappropriate TPs and/or investments

Initial review

Lack of understanding of covenant

Detailed case engagement Overarching issue?

Poor TKU and a lack of engagement from trustees and employers

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Limited investment/actuarial advice

Questions over DRCs/RP length

Poor governance Conflicts of interest

Small DB scheme strategy – ‘consultation’

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Broad agreement with the issues we have encountered We met with over 60 actuaries in Autumn 2017 Perception that TPR doesn’t engage with small schemes

Attendees wanted TPR to:

• Intervene more, take action when warranted and

publically demonstrate what we have done

• Restart including comments with closure letters
• Find a form of engagement that is between no

action and a full blown case

Small DB scheme strategy - outline

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• Set out our expectations in

advance

• Questionnaire

Engagement

Clearer, Quicker, Tougher

• Review valuation

documents

• Review questionnaire

Submission

• No action
• Further

engagement/enforcement

Decision

Being clearer - AFS 2017 messages

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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.... .

Being quicker – efficiency and effectiveness

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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

Being tougher - late completion of valuations

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Threat of a fine being used by some employers and their advisers to pressure trustees to agree Fine unlikely if reasons for no agreement are genuine We don’t want trustees to agree something inappropriate We have fined trustees and expect valuations to be completed on time

Questions?

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