The Pensions Regulator will develop a new administration strategy, saying its engagement with 15 pension administrators found “signs of progress” but that challenges remain across a range of topics. It will report to the Department for Work and Pensions to help shape future legislation.

Many administrators have become more strategic and resilient, TPR said as it published insights from its year-long engagement, but it highlighted that issues remain around changes to regulatory requirements, technology, staffing, data, and cyber security. 

Interim executive director of market oversight Julian Lyne said more work is needed to reach expected standards: "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.” 

He said: “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.” 

In a further step, the regulator will now develop an administration strategy to support the market, while continuing its direct engagement with administrators. 

Administration guidance for trustees will be updated, and TPR will seek to challenge the prioritisation of administration and data quality in a way that supports better member outcomes. 
 

The regulator also plans to actively participate in industry working groups to foster collaboration with the industry and support collaboration between trustees and administrators. 

 

TPR will report to the DWP to “help shape future legislation”. 

 

The chair of the Pensions Administration Standards Association, David Fairs, welcomed that his former employer recognised the investment that has already taken place in the sector and said PASA will continue to support this. 

 

“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,” said Fairs. 

 

PASA president Kim Gubler said improvements need to become embedded and not happen just in response to regulatory pressure: “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.” 

 

One of the administrator firms TPR engaged with was Aon. Partner Becky McGowan said the engagement was detailed and thorough. 
 

McGowan welcomed TPR’s conclusions about the importance of involving administrators more closely in strategic and operational decisions.  

 

“Having administration fully integrated into retirement advice allows the sharing of knowledge and expertise in both directions; ensuring administration is not an afterthought but a key part of any project. This is what enables delivery of a high-quality service to schemes and their members.”