TPR funding powers will weaken trustees

The actuarial firm said if an amendment to the Pensions Bill becomes law the regulator will be able to use scheme-specific funding powers if it decides action taken by trustees was not 'prudent'.

At present it can only intervene if there has been a procedural failure.

Hymans Robertson partner Patrick Bloomfield said the "apparently innocuous" extension could cause major problems for trustee boards.

He told PP: "It is one of these things that at first glance appears innocuous and does not change the position. But then when you look at it again it has the potential for significant change in how it goes about its business. There is a possible storm cloud on the horizon."�

Bloomfield said the amendment gives the regulator the opportunity to bypass trustee boards completely.

He said: "The regulator already had strong powers. It gave trustees a warning, it was more stick than carrot. Now it can bypass trustee boards altogether.

"There is potential to overstep the mark and to undermine the way the trustee system works in operation."�
The regulator denied the power is a threat to trusteeship.

A TPR spokeswoman said: "This would not change our approach, and we would continue to be proportionate, risk-based and a referee not a player.

"We would still gather evidence and show why it is reasonable for us to act and where we plan to use our powers this must first be approved by the determinations panel.

"Trustees must liaise with the employer while undertaking the scheme funding process – we would only intervene where we believe there is a real reason to do so."�