The Pensions Regulator’s (TPR's) Chief Executive, Charles Counsell, welcomed the Pension Schemes Bill receiving its Royal Assent. He said: “The Pension Schemes Act 2021 provides a strong package of measures to further protect UK pension savers. We are extremely pleased to see it become law and have worked closely with the Department for Work and Pensions to develop effective proposals that will make a real difference to savers.
“Through the new Act, we will build on our clear, quick and tough approach to drive better standards across the pension schemes we regulate and ensure savers are treated fairly by employers.
“The Act gives us new powers to act against unscrupulous employers and enhances our ability to gather information more efficiently, and to scrutinise how defined benefit pension schemes are funded and the actions that affect them. We will be clear in our expectations when talking to trustees, employers and others, and quick to take effective action where we have concerns. Trustees will be expected to demonstrate how their funding approach is prudent, appropriate and sustainable.
“We will continue to work closely with the industry and other stakeholders to produce the necessary codes and guidance to ensure the measures are introduced in an effective way. We are a risk-based and proportionate regulator and this measured approach will continue. Our work is driven and directed by the pursuit of our statutory objectives and we use our powers where appropriate and reasonable to do so.
“The Act highlights that pension scheme trustees should be considering the effects of climate change, and we can expect regulations requiring them to engage more fully with the risks and opportunities arising from the response to this global emergency. We too are stepping up to meet this challenge and will be launching our own climate strategy during 2021.”
Notes for editors
TPR is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund; to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only).
