On the go: The Pensions Regulator has cautioned local authority defined benefit schemes that it does not have the power to waive responsibilities such as collection of contributions, as some pension boards begin to worry about cash flows.
Thirty-seven per cent of Local Government Pension Scheme stakeholders surveyed during a Pensions and Lifetime Savings Association webinar on Monday said they expect some difficulties with cash flows before the end of 2020, while 4 per cent foresaw significant problems. Another 37 per cent said it is currently too early to say.
However, LGPS schemes have limited flexibilities to aid employers struggling through the pandemic. While scheme contributions can be paid at any time during the year, they must be collected in full by the end of the year.
Speaking on the webinar, Nick Gannon, the regulator’s policy lead, said TPR is only able to offer leeway in the approach it takes and cannot alter the rules it enforces.
“As a regulator we are a rule-taker, not a rule-maker, so we still have to follow the law and ensure that schemes follow the law. But what we can do is vary our approach to how we do that,” he said.
“We will accept that [meeting obligations] is an awful lot different and potentially a lot more complicated than it has been in recent years.”
Mr Gannon said the regulator itself is back to “something approaching business as usual”, having completed its Covid-19 workstreams, and that working from home is allowing its supervisory team to log more engagement time with large schemes.
“If you know there’s going to be a problem and you have a plan, then by all means let us know about that, because it’s better that we know ahead,” he said.
“We’ll be much more relaxed about that than if we get 200 members phoning us up.”
