Trustees and administrators must work together to deliver even higher standards of administration and help achieve better outcomes for savers, The Pensions Regulator (TPR) has warned.
TPR today published new insights from its year-long engagement with 15 pension administrators, highlighting the growing importance of administration.
The review found encouraging signs of progress, with many administrators becoming more strategic and resilient. But challenges remain particularly around changes to regulatory requirements, technology, staffing, data, and cyber security.
Julian Lyne, Interim Executive Director of Market Oversight at TPR, said: “Administration remains central to good saver outcomes and so we welcome these improvements. But more work is needed to reach the standards we expect.
"Investing in technology and new skills, improving data, pushing for better governance and transparency, and strengthening resilience to cyber-attacks, should help reduce risks and improve outcomes for savers.
“We expect administrators and trustees to reflect on these findings and work together to identify ways to improve administrative practices to better serve savers. As the market evolves, trustees must take greater responsibility and accountability for ensuring those improvements happen.”
TPR’s industry discussions with administrators focused on four key themes:
- financial sustainability
- technology and innovation
- risk and change management
- cyber resilience
In its latest market oversight report, TPR shares the key insights from these engagements. It is intended to support all those involved in administering occupational pension schemes and to highlight opportunities to strengthen governance, service delivery, and outcomes for savers.
To support the industry, TPR is:
- developing a new administration strategy
- continuing direct engagement with administrators
- updating its administration guidance setting clearer expectations for trustees
- promoting collaboration and transparency between trustees and administrators
- collaborating with the industry and looking at actively participating in industry working groups
- advising government on future legislation
Notes for editors
TPR is the regulator of work-based pension schemes in the UK. Its statutory objectives are to:
- protect members’ benefits
- reduce the risk of calls on the Pension Protection Fund (PPF)
- promote, and to improve understanding of, the good administration of work-based pension schemes
- maximise employer compliance with automatic enrolment duties
- 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)
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