UK TPR Workplace Pensions Oversight

On Feb. 22, UK TPR reported work pensions market oversight shift.

  • UK TPR announced a strategic shift in its oversight of the workplace pensions market.
  • Rapidly Evolving Market
  • Pensions market is moving from a fragmented landscape of thousands of small schemes to environment of fewer, larger schemes; regulatory approach much change.
  • Pensions landscape moving to a competitive marketplace of fewer, larger schemes.
  • Automatic enrolment has made saving the norm for millions of workers, shifted balance towards defined contribution (DC) saving; noted that master trusts are the vehicle of choice for most employers and account for 90% of DC memberships.
  • 82% of savers concentrated in largest five schemes by assets under management.
  • Employers have moved away from defined benefit pensions, with just 4% of schemes fully open, and schemes considering options in how they make good their promises to savers including new wave of consolidation vehicles hitting the market like superfunds.
  • This means pensions have changed from a landscape of one employer, one scheme, to a competitive marketplace of competing master trusts and consolidation vehicles.
  • UK TPR intends to engage differently with the market, and, from Apr. 2024, will create 3 new regulatory functions which protect, enhance and innovate in savers’ interests.
  • New Regulation
  • Regulatory compliance: protecting pension savers' interests through the effective and efficient delivery of regulatory compliance services, targeting schemes and employers.
  • Market oversight: enhancing market by strategic engagement with schemes, others who influence pension saver outcomes, focused on value for money and trusteeship.
  • Strategy, policy and analysis: using insights from regulatory approach and elsewhere to evolve the regulatory framework and support market innovation in savers’ interests.
  • Supported, enabled by key functions: operations, digital, data, technology, people.
  • UK TPR Changes
  • In Apr. 2024, UK TPR will recruit to fill the three new executive director roles, i.e. regulatory compliance; market oversight and strategy; and policy and analysis.
  • These roles will be board-level appointments, pending approval by pensions secretary.
  • From Apr. 2024, there will be temporary appointments from within UK TPR.
  • Also from April, most functions currently in UK TPR’s frontline regulation (FLR) directorate, including enforcement, intelligence, customer service and regulatory transactions, will move into the new Regulatory Compliance directorate.
  • UK TPR’s automatic enrolment (AE) team, which deals with employer compliance with AE duties, will move to Regulatory Compliance; UK TPR’s supervision team - currently part of FLR - will move to new Market Oversight directorate, as does communications.

Regulators UK TPR
Entity Types Pension
Reference PR, 2/22/2024
Functions Compliance; C-Suite; HR; Operations; Reporting
Countries United Kingdom
Category National Regulator
Products Pensions; Retirement Plan
Regions EMEA
Rule Type Guidance
Rule Date 2/22/2024
Effective Date 2/22/2024
Rule Id 201971
Linked to N/A
Reg. Last Update 2/22/2024
Report Section UK

Last substantive update on 02/24/2024