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.
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)
