Talking head: Interim chief executive Stephen Soper looks at what the Pensions Regulator has coming this year, including how its revised DB funding strategy will affect employers and schemes.
We have put a huge amount of effort into getting our communications right and supporting employers to meet their new duties.
DC pensions have never been more in the spotlight
But we’re aware that the biggest challenges for both the regulator and the pensions sector are still ahead.
In 2014 we will move from large employers to medium-sized businesses hitting their staging dates.
More than 30,000 employers will need to start enrolling their employees this year.
We continue to evolve our communications and guidance to meet the needs of different audiences, including IFAs, accountants and those intermediaries and trade bodies that smaller employers will look to for support.
We will also be providing guidance in helping employers select a good scheme for their workers.
Defined contribution pensions have never been more in the spotlight, as a result of last year’s Office of Fair Trading report, and we are focused on driving up standards so members are automatically enrolled into high-quality, well-managed schemes – as well as improving practices in existing plans.
As part of this work, we plan to publish a comply-or-explain governance statement for trustees in early 2014, to help them demonstrate to employers and members how their scheme meets the DC quality features we have outlined.
Another area where we want to do more is in publishing information to help trustees gauge whether their scheme provides value for money, building on guidance we published late last year.
As Pensions Expert readers are aware, the past few years have seen a marked change in the economy, in pensions legislation and in the financial markets which has led us to evolve and adapt our approach. This has culminated in us updating our DB code of practice and regulatory strategy, which we are currently consulting on.
Balance is the watchword of the consultation – focusing on the importance of trustees balancing the needs of the scheme with the employer’s plans to invest in the growth of their business.
Also towards the end of 2013, we launched a consultation on our regulatory approach to governance and administration in public service pension schemes, the first step in implementing our expanded remit under the Public Service Pensions Act 2013.
The threat from pensions liberation fraud to members’ benefits remains very real and we expect these scams will continue to hit the headlines in 2014.
We will be working closely with our partners in the cross-government ‘Project Bloom’ task force to clamp down on the fraudsters through our intelligence and case investigations, and by refreshing our communications campaigns to raise awareness among consumers and pension professionals alike.
So 2014 promises to be another busy and challenging year. I am confident we are in a strong position to meet both the challenges we are aware of, and flexible enough to meet those we have yet to discover.
Stephen Soper is the Pensions Regulator’s interim chief executive
