On the go: The Pensions Regulator is investigating a number of companies’ pension schemes for allegedly taking advantage of a relaxation in the deficit repayment contribution rules due to the pandemic.
According to the Financial Times, the watchdog received 200 revised pension payment plans from schemes, after launching new guidance in March aimed at helping employers freeze their DB obligations for three months in response to the economic fallout from coronavirus.
In June, the regulator advised trustees not to “unquestioningly” agree to extensions of these contribution holidays without checking if employers’ requests were appropriate.
TPR has revealed it is questioning a number of schemes where it was not clear whether they had behaved appropriately.
“A proportion of [the 200] have clearly followed our advice and done what we asked them to do in terms of the action that they have taken,” David Fairs, executive director of regulatory policy at TPR, told the FT.
“[However,] there are some where it is less clear that they took account of our advice. We are asking those schemes further questions and looking into the decisions that they made,” he said.
Mr Fairs added that the regulator might take action against schemes if “we don’t think what they have done is appropriate”.
TPR declined to disclose how many schemes it was investigating.
Enforcement action could include employers being required to make good on pension payments into schemes, if inappropriate behaviour has been identified, it added.
