We have agreed a new set of key performance indicators (KPIs) with No. 10 and HM Treasury as part of our ongoing commitment to support sustainable long-term growth across the UK economy.
We have made clear commitments to focus on high quality investment governance. This can enable productive investment to improve returns and support the drive for growth. It can also reduce unnecessary regulatory burden, support market innovation and digital enablement.
These KPIs support two of our corporate priorities to deliver key TPR outcomes:
- Fewer schemes, delivering good outcomes: We expect pensions schemes to offer value to savers and invest in productive assets and innovative products, where it is in savers’ interests to do so.
- A data-led, digital-enabler underpinned by modern technology: Harnessing the power of digital, data and technology to drive innovation, efficiency and regulatory excellence in the best interests of savers, whilst minimising the regulatory burden on schemes.
The KPIs form an integral part of our tracking through the year and will be reported against in our Annual Report and Accounts at the end of next year.
1. Corporate priority: fewer schemes, delivering good outcomes: We expect pension schemes to offer value to savers and invest in productive assets and innovative products, where it is in savers’ interests to do so.
1.1 The outcome we seek is to reduce capital reserving requirements for master trusts to generate growth with the following supporting KPI:
- Generate, publish and conclude the regulatory cap review by December 2025. Subject to the review, the amount of excess capital reserving that has been freed up for more productive investment.
1.2 The outcome we seek is to encourage consolidation and consideration of investment in productive assets so that the value for money framework drives public disclosure of long-term risk adjusted net returns to help drive competition, growth and enhanced saver outcomes. In advance of this, we will drive consolidation in savers’ interests and encourage the voluntary disclosure of asset allocation data to shine a light on the relationship between asset allocation and net performance. These outcomes are supported by the following KPIs:
- The number and proportion of small schemes (those with assets under management of less than £100 million) challenged by us which are rated as not value for money and consolidate.
- The number of defined contribution schemes in the market and the proportion of assets and members within master trusts, which have the highest governance standards.
- We will seek to establish the quantifiable economies of scale benefits from consolidation of small schemes into master trusts based on the evidence presented by government in its recent analysis: pension fund investment and the UK economy.
- The level of voluntary disclosure of asset allocation data at an aggregate, and where possible, default arrangement level from the largest defined contribution and master trust schemes.
1.3 The outcome we seek is the creation of an innovation framework and criteria to trial pensions innovation ideas, launching an innovation support service to test with the market by autumn 2025. This is supported by the following KPIs:
- Number of firms engaged: tracking the number of firms interacting with the innovation support service.
- Innovation ideas submitted: the number of industry innovation ideas shared with us including the onward actions.
- User satisfaction: collect and analyse innovation support service user ratings and any feedback.
2. Corporate priority: A data-led, digital-enabler underpinned by modern technology: Harnessing the power of digital, data and technology to drive innovation, efficiency and regulatory excellence in the best interests of savers, whilst minimising the regulatory burden on schemes.
2.1 The outcome we seek is delivery of key improvements to regulatory services. We will conduct a review of our scheme return and supervisory return data collection requirements by the end of March 2026 to identify options to reduce unnecessary burdens on schemes. Subject to the outcome of the review, the government will consider how and what we capture, including amendments to legislation as required. This is supported by the following KPIs:
- Number of duplicated information collection requests that have been identified, and where possible removed.
- Identified non-registrable information which does not add value and remove where possible over time.
2.2 The outcome we seek is to reduce unnecessary regulatory burden: over the course of 2025/2026, we will monitor our engagements with schemes and employers, seeking to reduce unnecessary regulatory burden while maintaining high levels of compliance. As part of this, we will monitor the quality and value of regulatory interaction and make sure that new interventions are not just clearly linked to delivery of better outcomes for savers but are also efficient and effective in delivery. This is supported by the following KPIs:
- Reduction in communications and enforcement interventions with employers, while maintaining high levels of automatic enrolment compliance.
- Monitoring of new interventions against an enhanced saver-focused outcome framework with metrics of efficiency and effectiveness.
- Baseline perception of regulatory engagement before ongoing monitoring, as well as tracking the type and topic of regulatory engagements within supervision.