The Pensions Regulator has published a new corporate strategy, setting out its priorities for the next 15 years.
Reflecting the changing nature of workplace pensions, this strategy outlines a shift in focus from DB to DC schemes, and a commitment to protect the financial wellbeing of savers in the years ahead.
The TPR says this publication builds on earlier work to transform to a “clean, quick and tough” regulator.
TPR chief executive Charles Counsell said that while support remains in place for pension schemes and employers in the wake of Covid-19, this must be underpinned by longer-term plans to protect savers.
This is a discussion paper and will be finalised in the new year after consultation with the industry and key stakeholders.
This strategy analyses different groups of savers by generation, recognising each faces specific pension challenges.
From this analysis five strategic priorities emerge:
- Security – protecting the money that savers invest in pensions. Maintaining focus on the promises that are made to savers in defined benefit schemes and on protecting their pensions from scammers; over the fifteen-year horizon of the strategy, as assets in defined contribution schemes grow, there will be a shift in primary focus to the security and value that these schemes provide savers.
- Value for money – savers’ money must be well-invested, costs and charges must be reasonable; and good quality, efficient services and administration are driven by robust data.
- Scrutiny of decision making – monitoring those who make decisions that impact savers’ outcomes, closely scrutinising any decisions that pose a heightened risk to the quality of these outcomes.
- Embracing innovation – encourage innovation and good practice, collaborating with the market to enhance security, efficiency, transparency, simplicity, and choice.
- Bold and innovative regulation – transforming the way TPR regulates to put the saver at the heart of its work, driving participation in pensions saving and enhancing and protecting savers’ outcomes; maintain a sharp focus on bold and innovative regulation, anticipating and preventing issues before they materialise.
Counsell adds: “In a rapidly evolving pensions world, it’s vital that as a regulator we anticipate the change that’s coming. That’s why today we’ve outlined our 15-year vision for the future, putting savers at the heart of everything we do as we cement our clearer, quicker and tougher approach.
“We are determined to do all we can to protect pensions savings, drive participation and enhance outcomes now and in the future.
“We will do what is necessary to support the industry through the current crisis and to recover strongly so that savers can enjoy a secure retirement.”