TPR Strategy: Pensions of the future
The Pensions Regulator’s mission is to protect savers money, help to enhance the pensions market and support innovation in the interests of savers.
Our vision for pensions is a landscape of fewer, larger pension schemes that deliver good outcomes for savers by default – from joining a pension through to retirement.
That is why we have set out a regulatory roadmap which aims to ensure that:
- All defined contribution savers receive value for money
- All defined benefit schemes secure their future – whether that’s in end game or an ongoing future offer
- All schemes are well run with high quality data powering informed decision-making by excellent trustee boards
Our mandate derives from statutory objectives, which are set out in the Pensions Act 2004, amended by the Pensions Acts 2008 and 2014. These are:
- To protect the benefits of members of occupational schemes
- To promote, and to improve understanding of, the good administration of work-based pension schemes
- To protect the benefits of members of personal pension schemes where direct payment arrangements are in place
- To reduce the risk of situations arising which may lead to compensation being payable from the Pension Protection Fund (PPF)
- In relation to DB scheme funding, to minimise any adverse impact on the sustainable growth of an employer
- To maximise employer compliance with employer duties and the employment safeguards introduced by the Pensions Act 2008
Our corporate plan guides us in meeting these statutory objectives and delivering on our commitment to pension savers and our performance has been assessed by an independent Public Bodies Review. Our missions are to:
- Protect savers’ money by making sure trustees and employers comply with their duties
- Enhance the system through effective market oversight, influencing better practices; and
- Support innovation in savers’ interests so that new products and services deliver good outcomes
For more information about The Pensions Regulator please visit thepensionsregulator.gov.uk or read our CEO’s speech on driving innovation in the interests of savers.
Our Evolution and Transformation
The pensions landscape is undergoing radical change.
We are moving from a system of small schemes independent of one another to a concentrated, consolidated, competitive marketplace.
It is a journey towards, fewer, but larger, pension schemes. Complex financial institutions that not only have a large say on the retirement outcomes of millions of savers but could also impact the UK economy.
What this means for TPR
In the past ensuring compliance with the law ensured good saver outcomes: members received their promised benefit.
In the future, ensuring compliance with the law will not be enough to deliver good saver outcomes. Savers’ retirement incomes are not guaranteed.
To make sure all savers receive good pension outcomes we must seek to enhance the system – that means evolving from a pure compliance focus to also consider our ability to influence and innovate in savers’ interests.
This is complex – requiring a different set of regulatory tools and a different set of skillsets. It requires us to become more proactive and market-facing, with evidence and insight at the heart of our regulatory decision-making.
That is why we are undergoing a significant transformation to change the way we work and deliver for savers in an evolving pensions landscape.
What this means for our people and culture
To succeed all our people, from the front line through to our expert corporate services, must be aligned in purpose, seize on their agency and accountability, collaborate with other experts, and always ensure a performance mindset to deliver the best for savers.
We must be strategic in thinking about the workforce we need in the future and how to make the most of the rich talent we have in our workforce – deploying them in a way that makes the best of what we do, every part of what we do.