On the go: The Pensions Regulator published a settlements policy statement on Thursday with the overarching aim that these agreements offer fair and appropriate outcomes.
Settlement is defined by TPR as where the target of potential or ongoing enforcement action offers something in return for the regulator agreeing not to pursue or continue the action.
It does not include situations where the regulator decided not to pursue or continue with regulatory or civil proceedings.
According to the policy document, each case will offer its own unique challenges and circumstances.
As such, acceptable settlement cases may be different to each other, even with the same regulatory powers being used.
Such settlements could include an acceptable cash sum in a contribution notice case, or an undertaking not to act as a trustee in a prohibition case, according to TPR.
Alternatively, there could be an outcome that is different from one that could be secured through legal proceedings.
Other examples of settlement options include a change to the sponsoring employers to the scheme; shares in related companies or other assets; dividend sharing arrangement; the transfer of members to an alternative scheme; section 75 guarantees from entities in the wider group and security over assets, contingent assets and cash in escrow.
Patrick Bloomfield, chair at the Association of Consulting Actuaries, noted that although there was nothing unexpected in the policy, it would be helpful to have the clarity of what TPR will consider and the outcomes it wants to achieve.
He said: “It’s particularly interesting that TPR wants to see behavioural change, to improve the general levels of awareness and compliance in the industry. That can be a good thing, if well targeted at the handful of bad apples that undermine saver confidence in many well-run pension schemes.
“I’m optimistic that TPR’s policy will encourage trustees and employers who need to set something straight to come forward with sensible, balanced proposals that resolve their issues satisfactorily and expeditiously.
“It’s in everyone’s interests for TPR to be clearer and quicker, to keep costs down and let UK business get on.”
