The Pensions Regulator (TPR) has set out its strategic approach to regulating defined benefit (DB) and defined contribution (DC) schemes and maximising employer compliance with new automatic enrolment duties in its latest Corporate plan.
Setting out how it will regulate the defined benefit (DB) and defined contribution (DC) market through 2016, the Pensions Regulator (TPR) said it intended to develop its enforcement strategy for DC funds that fell short of quality standards put out to consultation in January and indicated it could take action over failure to comply with minimum cost standards.
The regulator said in its corporate plan: "It is vital trustees understand the risks they are taking and consider carefully whether a more complex approach to supporting the scheme, which may involve additional risk-taking by the scheme, is preferable to a straightforward one".
The regulator also said it would be consulting further on its enforcement strategy for DC funds, detailing how the industry would have to comply with the quality features outlined in January's consultation. "The enforcement strategy will explain how we plan to monitor the presence of our quality features in schemes across the market, and the actions that may be taken where they are found not to be present", it said.
Press release
Corporate plans
Further reporting from IPE (registration required)
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