Most plans trigger TPR action

Head of scheme-specific funding Ian Cordwell said the regulator had processed 2144 recovery plans – which all pension schemes with a deficit are required to submit – since the scheme-specific funding regime came into force in 2005.

Cordwell said that – of the 68pc of cases it had closed – 70pc triggered further action on at least one measure. He said 25pc of cases had triggered on both technical provisions and recovery plans; 26pc on technical provisions only; and 19pc on recovery plans only.

30pc of cases did not trigger a further regulatory response.

The technical provision trigger is activated if the scheme deficit crosses a certain threshold based on the maturity of the scheme and the strength of the employer covenant and the recovery plan trigger is activated when the period of the plan is longer than 10 years, the plan is excessively back-loaded, or the investment return assumptions appear to be inappropriate.

Cordwell added the regulator was now focusing on trustee knowledge and understanding, conflicts of interest, employer covenants and mortality. He noted the regulator had set up a model to manage conflicts of interest and added it would consider independent covenant assessment where appropriate.

He added that the regulator had set out its intentions on longevity in a draft statement published last month.