Perceptions of TPR’s performance quality deteriorate in 2021

More than half (54 per cent) of respondents said TPR’s overall performance was good, while 15 per cent said it was very good. 

Just over a fifth said the regulator’s performance was fair, while 1 per cent gave it a poor rating. 

The report is based on the 2021 perceptions tracker survey, which looked at how TPR is perceived to be performing and measured awareness and perceptions of the watchdog’s corporate strategy and its pledge to combat scams. 

There was a decreased perception that TPR is effective at bringing about the right changes in behaviour among its regulated audiences

The Pensions Regulator

The results are based on quantitative telephone interviews conducted from May to July 2021.

Last year the 69 per cent of respondents who provided a good or very good rating was lower than the 75 per cent seen in 2020. 

However, in 2021 the rating was higher than in 2019-20, and TPR said the improvement in 2020 “was linked to positive perceptions of TPR’s response to the Covid-19 pandemic”. 

Almost a fifth of respondents (18 per cent) said the watchdog’s performance during the pandemic was a reason for giving it a good or very good rating. 

The decrease in the rating compared with 2020 was mostly driven by pension professionals. In 2019-20, 72 per cent rated TPR’s performance as good/very good, which rose to 82 per cent in 2020 but fell to 70 per cent in 2021. 

There was little change in how trustees or employers perceived the regulator, with 71 per cent and 66 per cent providing a good or very good rating in 2021 respectively.

“There was a decreased perception that TPR is effective at bringing about the right changes in behaviour among its regulated audiences,” the watchdog admitted.

‘Less effective’ at protecting DC benefits

Fewer respondents thought TPR was effective at protecting defined contribution member benefits compared with the previous year. 

The proportion that said the watchdog was effective at this fell from 85 per cent to 75 per cent — closer to the 71 per cent level in 2019-20.

In terms of effectiveness, TPR’s ratings were highest for maximising employer compliance with automatic enrolment (88 per cent), protecting defined benefit members’ benefits (85 per cent), and improving standards in scheme governance and administration (83 per cent). 

The proportion of respondents who agreed that TPR is focused on the most important risks to members’ benefits fell from 82 per cent in 2020 to 75 per cent in 2021. 

Meanwhile, the proportion who agreed that the regulator’s actions are proportionate to the risk posed dropped from 72 per cent to 65 per cent. However, 93 per cent said TPR is a trusted source of information.

Most respondents (85 per cent) said trustee boards are clear on which legal requirements apply to them, and 84 per cent said it is clear what TPR’s role is and how that differs from other public bodies. 

Another 84 per cent said the watchdog clearly explains its expectations of trustees in respect of administration, and 83 per cent said TPR holds trustees, governing bodies and employers to account.

The watchdog was seen as less effective at bringing about the right changes in behaviour among its regulated audiences, with just 63 per cent agreeing with this statement — a fall from 71 per cent in 2020.

When asked new questions in the 2021 survey, including whether TPR takes a system-wide view across the pensions markets responding to risks appropriately, 66 per cent of respondents agreed. 

Meanwhile, almost three-quarters said TPR puts savers at the heart of everything it does. 

The industry perceived TPR to be trustworthy, clear and risk-based, but there was less consensus that it was flexible, innovative and bold. 

More than 90 per cent said the regulator was trustworthy and 79 per cent felt it was clear, and 78 per cent said risk-based — but just a third said TPR is bold, 35 per cent said innovative, and 40 per cent said it was flexible. 

Code, guidance and scams

The regulator’s code and guidance were perceived to take up the most resources on governance and administration, with 40 per cent of respondents saying this was true, followed by the trustee toolkit (29 per cent), and visiting TPR’s website (24 per cent).

Almost three-quarters were aware of TPR’s approach to regulation, with 84 per cent saying it would improve pension scheme governance and administration, while 76 per cent said it would improve outcomes for members.

More schemes communicated warnings about scams to members on a regular basis, up from 78 per cent in 2021 and 68 per cent in 2019-20, while 42 per cent added scams content to their website, up from 34 per cent in 2019-20.