On the go: The Pensions Regulator has updated its Covid-19 guidance for trustees, highlighting that the pandemic “is placing huge pressures on the administration of pension schemes”.
The watchdog urged pension professionals to “work flexibly” with administrators, with the goal of supporting them in “delivering core functions”.
This could include trustees agreeing to make changes in operating procedures, such as making changes to payments that are normally made by cheque.
Schemes should also allow electronic signatures and documents, and encourage other third-party providers, such as fund managers, to do the same since the government has endorsed such practices, TPR stated.
Trustees should also hold higher than usual amounts in bank accounts, which will ensure payments can be made, even if there is a delay in disinvestment processes.
Overall, scheme professionals should “be vigilant and make sure members are not rushed into any financial decisions”, the regulator stated.
On Wednesday, TPR, the Financial Conduct Authority, and the Money and Pensions Service issued a warning that rising levels of vulnerability caused by the Covid-19 lockdown could see more savers targeted by scammers.
Finally, trustees, scheme managers and administrators have been advised to contact the watchdog if they believe they will be unable to pay members’ benefits on time.
“We are reviewing our reporting requirements and will be issuing further advice on this shortly,” it added.
