The Department for Work and Pensions has launched a consultation on proposals to improve the regulator's powers and increase DB member protections. Here are the key questions it is asking...
The consultation - announced by Opperman in a keynote address at Pensions & Benefits UK this morning - sets out proposals to improve the Pensions Regulator's powers so that they can be more proactive and get involved earlier when employers make changes which could affect the pension scheme.
It also includes proposals to help the regulator obtain the right information about a scheme and its sponsoring employer; and get redress for members if things go wrong.
In particular, the consultation is asking the following questions:
Improving the regulator's and trustees' role in scrutinising corporate transactions
The regulator would like views on:
- How the notifiable events framework could be made clearer and more effective; whether the right events are captured especially in more complex scenarios, ensuring that the Regulator is notified of appropriate events at the right time;
- How the new ‘declaration of intent' should be designed and implemented so that employers engage appropriately with the trustees, and that trustees and the Regulator are provided with meaningful information without putting undue burdens on businesses; and
- How this should be enforced.
Improving the sanctions regime to deter wrongdoing in most cases, and punish it when necessary
The regulator would like views on:
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What behaviours and actions (or inaction), and in what circumstances, should attract sanctions;
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What type of sanctions are appropriate in these different scenarios (e.g. fines up to the existing maximum, fines with a new higher maximum, or criminal sanctions).
Improving the regulator's existing powers to issue Contribution Notices and Financial Support Directions
In particular, the DWP would like views on where it should make improvements to the regulator's current powers to make it more efficient to compel related companies to provide financial support to a scheme, and requiring companies to compensate a scheme if they have caused loss or detriment to the scheme. We would also like views on how this should be enforced.
