TPR outlines focus areas for next three years
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The Pensions Regulator’s corporate plan sets out its priorities for the next three years, with the DB funding regime dominating 2024-25 and the new value for money framework being in focus over the subsequent two years. TPR has also announced two new hires.
The corporate plan, published on Friday, details TPR’s direction and priorities over the coming years.
TPR named as key challenges in 2024-25 embedding the new defined benefit funding code that is due to come into effect on 22 September, ensuring schemes deliver value for money, raising standards of trusteeship and driving trustees to prepare for pensions dashboards.
In the second and third years of the plan, TPR will focus on the delivery of the defined contribution value for money framework, addressing deferred small pots and working with industry to develop solutions to support savers into retirement.
“The pensions market is changing to one of fewer, larger, schemes. This presents new risks and opportunities for savers and the economy,” said TPR chair Sarah Smart.
“We will encourage innovation by helping trustees support DC savers into retirement and supporting DB models and options for consolidation that protect savers.”
Nausicaa Delfas, TPR’s chief executive, said: “Our focus is not just on the fundamentals of driving high levels of compliance, but also working together to enhance the system and support innovation in savers’ interests. Internally this will involve investing in our people, developing our digital, data and technology capabilities and embedding our new structure, which aligns with our strategic priorities.”
Priorities for the next three years include, among others:
- implementing the defined benefit funding regime;
- supporting the Department for Work and Pensions and Pension Protection Fund on surplus sharing and a public sector consolidator;
- supporting DWP on potential superfunds legislation;
- a regulatory framework for collective DC;
- developing the value for money framework with the DWP and the Financial Conduct Authority; and
- collaborating with government and industry on decumulation products and pathways.
The corporate plan coincides with a new operational structure, with TPR dividing its operations into regulatory compliance, market oversight, and strategy, policy and analysis.
While outside TPR’s remit, some in the industry feel it is important to make the new value for money framework apply beyond workplace pensions.
“We welcome TPR’s commitment to the delivery of a value for money metrics, but it’s vital that these apply to the entire defined contributions pensions market, not just workplace pensions,” said Patrick Heath-Lay, chief executive of the People’s Partnership, provider of master trust the People’s Pension.
“We urge TPR and the FCA to ensure there is a plan to make these metrics consumer facing as soon as possible across all DC schemes," he added.
Simon Kew, head of market engagement at consultancy Broadstone, said the regulator’s plan offered continuity. “It is positive to see a focus on embedding existing policy to ensure positive progress for members and savers rather than following the temptation for constant innovation," he said.
Kew added: “While it may be not be the glitziest area in pensions, sound data and best-in-class administration will be at the heart of making many of these reforms a success, so scheme managers and trustees must be prepared for further regulatory cajoling on this matter.”
New COO and permanent director for digital
On Friday, the regulator also said it has hired Andrew Baigent as chief operating officer and Paul Neville as permanent executive director of digital, data and technology. The pair will join TPR’s executive committee and board.
Joining on 4 June, Baigent is a chartered accountant and former finance director with experience in leading major digital change programmes.
Neville has experience in digital, data, technology and business change. He joined TPR in October 2023 as interim executive director of DDaT and is now being given that role permanently.
“Andrew brings a wealth of experience managing complex organisations. This will be critical in making sure we continue to evolve and align our resources and talent behind initiatives that really deliver for savers,” Delfas said.
She added: “Paul has already made a positive impact at TPR helping us transform towards a data-led and digitally enabled regulator. His permanent appointment will help us deliver in the interest of pension savers now and in the future.”
