The Pensions Regulator

Alert to risks in the downturn - statement by the Pensions Regulator

Ref: PN09-04
20 April 2009

Today the Pensions Regulator issued a statement to the regulated community, Alert to risks in the economic downturn, to explain how they can work in partnership through the economic downturn.

We recognise the vast majority of schemes are well run by dedicated individuals; this statement is intended to alert the community to potential risks, and to encourage trustees and other pension managers to contact the regulator if they are worried.

The statement also reminds the regulated community of the important role of whistle-blowers, and seeks to reassure the regulated community that where necessary the regulator will take sanctions against unacceptable behaviour.

Tony Hobman, Chief Executive of The Pensions Regulator, said:

“In these tougher times, we will continue to monitor the economic situation and, along with our partners, to continue to focus on the key risks in the system to ensure that the promises made in pensions are upheld.

We remain assured that the regulatory framework is flexible enough to cope with the impact of the economic downturn, and will continue to remain vigilant through the downturn and encourage others to do the same, and to contact us if they have concerns.

In doing, we hope to ensure uniform adherence to the high standards shown by the vast majority to secure a level playing field and the long-term protection of UK pensions.”

Editor's notes

1. The Pensions Regulator is the regulator of work-based pension schemes in the UK, with objectives to protect members' benefits, promote good administration and reduce the risk of calls on the Pension Protection Fund. Our approach is risk-based focusing on education and enablement, with enforcement where appropriate. We have the ability to:
   
2. • collect information about pension schemes; through scheme returns, under the scheme funding regime and as well as statutory (including whistleblowing) reports;
   • issue notices requiring actions to tackle non-compliance, prohibit trustees who are judged not fit and proper to carry out their duties or appoint independent trustees;
   • direct pension schemes as to how to calculate their liabilities and the contributions required;
   • issue a contribution notice where there is a deliberate attempt to avoid liabilities, or a financial support direction where the employer is a service company or insufficiently resourced.