The Pensions Regulator

Regulator sets out priorities for the next three years

Ref: PN07-08
8 May 2007

Key priorities for the next three years have been outlined by the Pensions Regulator within its Corporate plan:

• Defined benefit scheme funding will be strengthened by completion of scheme specific valuations and those schemes with deficits will have agreed recovery plans
• Governance of work-based pensions will be improved via a year-on-year improvement in the extent to which trustees demonstrate knowledge and understanding of governance requirements
• Risks to members of defined contribution schemes will be reduced via raised understanding amongst trustees and others involved in running defined contribution schemes

The Corporate plan 2007-2010 sets out the regulator’s strategy and aims, and explains how its resources will be deployed over the next three years to deliver its risk-based approach to regulation. It also highlights progress made in the development of the regulator: its systems, culture, business processes, and delivery of the regulatory framework required by the Pensions Act 2004.

Pensions Regulator chief executive Tony Hobman said: “We have built a strong basis for further development relating to our core themes of strengthening scheme funding, improving the governance of work-based pensions, and addressing the risks to defined contribution scheme members, whilst delivering risk-based regulation.

“Our overriding goal is to meet our statutory objectives, working efficiently and in partnership with the regulated community, government and representative bodies. This plan will enable us to deliver against the statutory objectives and key challenges set out in our medium term strategy.”

Editor's notes

1. The Corporate plan 2007-2010 incorporates the Business plan for the year 2007-2008.
2. The Pensions Act 2004 gives the Pensions Regulator a set of specific objectives:
   • To protect the benefits of members of work-based pension schemes
   • To promote good administration of work-based pension schemes
   • To reduce the risk of situations arising that may lead to claims for compensation from the Pension Protection Fund.
3. The Medium term strategy was published in April 2006.
4. The Pensions Regulator is the regulator of work-based pensions in the UK, with wide-ranging and flexible powers under the Pensions Act 2004. Its powers include the ability to:
   • collect detailed scheme information;
   • issue improvement notices and third party notices, enabling the regulator to ensure problems are put right;
   • freeze a scheme that is at risk while the regulator investigates prior to wind-up;
   • prohibit trustees who are judged not fit and proper to carry out their duties; and
   • issue a contribution notice or financial support direction.

   The Pensions Act 2004 also imposes a statutory obligation on 'whistleblowers' to report to us suspected breaches of the legislation.