An amendment too far

It is an obsession which has mired occupational pensions in red tape over the past decade or so.

And it will further undermine trusteeship if an amendment to the Pensions Bill becomes law.

Under the department for work and pensions’ proposal, The Pensions regulator will be able to use its scheme-specific funding powers if it decides that action taken by trustees is not "prudent".

Until now, TPR can only intervene if there has been a procedural failure.

It is not an innocuous extension of its powers and could, as Hymans Robertson rightly points out, cause major problems for trustee boards.

The DWP’s amendment seems to ignore that it a trustee’s fundamental duty to act "prudently". It might be tempting to take a punt and put a huge part of the portfolio on Manchester United lifting the Premiership again this season – but it is not "prudent".

Hymans Robertson partner Patrick Bloomfield believes the amendment gives TPR the opportunity to bypass trustee boards completely with the potential to overstep the mark and undermine the way the system works.

TPR insists the change will not change its approach and it will continue to be "a referee and not a player".

If that is the case, why make any change at all?

TPR may well be very moderate in the way it uses any new powers. But the mere fact that it has them at its disposal will put pressure on the regulator to use them. And it will not instil confidence in trustees.

This is one amendment the Bill can do without.