It helps us to:
- monitor these schemes closely
- clearly outline what we expect
- act quickly where we have concerns
The actions we take will depend on the risks that we identify.
Who this applies to
Supervision will apply to strategically important pension schemes. We will use a range of criteria to select defined benefit, defined contribution and public service pension schemes. These include:
- previous interactions with us
We will build strong relationships with these schemes regardless of whether they trigger our traditional risk indicators.
How it works
We will use different approaches and pension schemes will experience different levels of scrutiny. This will depend on the risks we identify in their particular scheme or segment of the pensions landscape.
For instance, for some schemes we may agree improvement plans to address particular concerns. We will have regular meetings to review their progress and take enforcement action when this is appropriate.
Having a close working relationship will also enable the people running these schemes to be open and transparent with us.
Changes to how we regulate
Supervision is part of our evolving approach to protecting and regulating pensions.
It is in addition to the process for authorisation and supervision of authorised master trusts.