A summary of The Pensions Regulator (TPR) Board meeting in February 2024.
Introduction, apologies and welcomes
The Chair welcomed the attendees, observers and apologies, and introduced the new NextGen Non-Executive Director from Ofcom, the Interim Executive Director of Frontline Regulation, and the Interim Chief Executive of PPF.
Declarations of conflicts of interest
No declarations were made in respect of items on the agenda. Two Board members declared interests in relation to other matters.
Draft minutes of the 14 December 2023 board meeting
The minutes were approved as a correct record.
Chair's update
The Chair gave an update on recent meetings and events with the Department of Work and Pensions (DWP), the Minister for Pensions, and other stakeholders. The Chair also asked a member to provide a verbal update from the Renumeration and People Committee (RaPCo) meeting, which covered topics including staff attrition, industrial action, employee relations, and reward.
CEO report: strategy
The CEO highlighted the key points of the report, including the laying of the general code in March, the improvements in regulatory collaboration, and the next steps for the transformation and creation of three new directorates. The Board discussed various issues, including the top risk of internal fraud, the value for money of the new enforcement approach, and the options paper for TPR rule making powers.
Quarterly performance report
The Board considered the report, which showed that TPR ended quarter three under budget and with a lower headcount than planned. The Board welcomed the progress on the digital services delivery project and the first multidisciplinary team. The Board also raised questions on the performance metrics, especially on cyber and major incident incidents, and the regulatory grip summary slides. The Board requested further information and clarification on these areas.
Deep dive: trusteeship
The Board received a presentation on the workstream to drive up standards of trusteeship and ensure only competent trustees manage well-run schemes. The Board endorsed the workstream and suggested some areas of focus, such as guidance for trustees to consolidate, assurance regime for trustees, behavioural science to drive compliance, support for trustee register, and support for voluntary supervision of professional trustees.
Review of risk appetite statement (RAS)
The Board discussed the revised RAS, which was pitched at a higher level and aligned with the Government Finance Function guidance. The Board approved the narrative, structure and publication of the RAS, subject to some minor amendments and further work to embed the activity within the new organisational design and include quantitative measures. The Board also agreed to revisit the question of whether TPR could be more open to risk in some areas.
Board effectiveness review
The Board considered the findings and recommendations from the internal review, which concluded that the Board was fulfilling its responsibilities effectively, but identified some potential areas for improvement. The Board agreed to implement the recommendations, which included defining board objectives, enhancing board effectiveness and dynamics, and establishing a comprehensive Non-Executive Director induction and training plan.
CEO report: operations
The report was taken as read and the Board commended the achievement of passing the alpha Submit service and the establishment of the first multidisciplinary team. The Board also discussed the underspend on pensions scams and the mitigation of reputational risk.
Key policy updates
The Board received an update on the key policy areas and the expected timeline for delivery. The Board discussed some of the challenges and opportunities in the policy landscape, such as the delays at the DWP, the call for evidence consultation, the master trust code, and the scheme maturing in the DB sector. The Board requested training for Non-Executive Directors on the latter topic.
Annual review of board governance documents
The Board reviewed and approved the proposed changes to the board standing orders and the expenses, gifts and hospitality policy. The Board also reaffirmed its agreement to abide by the code of conduct and the threshold for declarable shares.
Routine business
The Board noted the papers on TPR path to net zero, the draft Audit and Risk Assurance Committee (ARAC) and RaPCo minutes, and the action plan. The Board also noted the forward plan and agreed to review it after the March meeting.
Any other business
The Board discussed various matters, such as the Digital, Data and Technology (DDaT) strategy, TPR engagement opportunities, the multi-factor authentication rollout, and the post-Board vlog.