The responsibility of regulating pensions in the UK is The Pensions Regulator. It is a public organisation with the aim and purpose to regulate work-based pensions.
It’s remit is to ensure that employers adhere to rules in place such as providing Auto-Enrolement, or Defined Benefit schemes. So they are adequately funded to met the obligations of its members. Along with ensuring that they are being run in an effective manner in the best interest of the savers and members. Who are investing within a specific pension and retirement product.
What are the responsibilities of the Pensions Regulator !
The Pensions Regulator (known as TPR) is responsible for protecting the retirement and savings benefits. Held by members within a workplace pension scheme.
With the aim to ensure that they are being run and administrated effectively.
As part of pensions freedom being introduced within the Pensions Act 2008. It now means that employees must be automatically enrolled into a workplace defined contribution (DC) pension scheme. These schemes were introduced in 2012 with the aim of both an employer and an employer making contributions. As part of making pensions more available to all individuals and promote wider ownership and a better pension provision for the public in later life.
Does the Pensions Regulator have a clear set of objectives ?
- To protect the benefits of the member
- To reduce the risk of calls on the Pension Protection Fund (PPF)
- Promoting and improving the governance and administration or work-based pensions
- maximising employer compliance to ensure greater level of goverance
So how does it met these objectives, it employs a risk based approach. Concentrating its resources on the schemes that pose the greatest risk and adverse security towards its members’ benefits.
They have lots of useful information and tools on their website: https://www.thepensionsregulator.gov.uk offering guidance and advice to members, trustees, advisers, employers to ensure rules are being adhered to by all parties.
When was the Pensions Regulator introduced ?
It was created under the Pensions act 2004 the regulator replaced the Occupational Pensions Regulatory Authority (OPRA). They were then operational from 6th April 2005.
What powers does the Pensions Regulator have ?
The main reason is to try an eliminate and prevent problems arising. By providing support, guidance and advice to pension trustees (those responsible for running the scheme), scheme administrators, employers responsible for setting up schemes for its members.
It can be used to investigate pension schemes, so they can identify possible problems at an early stage, before they may escalate into larger problems,
These could be simple things like no paying correct level of contributions, not submitting the required administration or paperwork.
It can then decide if further action needs to be taken, so they could issue an improvement notice to get the run to scheme more effectively. They could issue a notice to recover unpaid contributions not being paid.
In a worse case scenario they could issue a freezing order to suspend a pension scheme. Or they could impose a fine, or even prosecute in the criminal courts if offences are deemed serious.
How can someone contact the Pensions Regulator ?
An individual can contact the Pensions Regulator directly, if they feel concerned or aggrieved by the actions taken by the individuals responsible for running their scheme.
You can contact them via https://www.thepensionsregulator.gov.uk or call them on 0345 600 0707, or write to them at:
Customer Support, The Pensions Regulator, Telecom House, 125-135 Preston Road, Brighton BN1 6AF
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