The Pensions Regulator has set out its priorities for the next three years in its Corporate Business Plan, which includes working with the government on the implementation of personal accounts.
In the 52-page document: ‘Corporate Plan 2007-2010’, the Pensions Regulator sets outs it three key aims, and explains how it will deploy its resources over the next three years to successfully deliver its risk-based approach to regulation.
The key areas outlined by the Regulator include:
- Strengthening defined benefit (DB) scheme funding – by moving from the building of systems and process – such as scheme specific valuations and recovery plans - to putting systems into practice and sharing the results.
- Improving governance of occupational pensions - through a year-on-year improvement in the level of Trustee Knowledge and Understanding (TKU), moving away from building understanding to influencing behaviour.
- Reducing risks to DC schemes - by raising understanding among trustees and other parties involved in running these schemes, and by implementing the conclusions of the recent consultation paper.
- Delivering effective risk-based regulation – by building on the relationships and the infrastructure put in place over the past two years to “sustain a continuous improvement culture”.
The Regulator points out the these core aims were initially outlined in its Medium Term Strategy in April last year, however it says while these challenges are ongoing, the Corporate Plan also outlines the new challenges which the organisation will face over the next few years.
Included in this is the task of providing credible responses to the various external reviews being undertaken into pensions institutions, pensions simplification and pensions regulation, and providing input to proposals for legislation in the UK and EU.
And in particular it says it needs “to work with the Department for Work and Pensions (DWP) to define and implement the Regulator’s role in relation to the government’s introduction of ‘personal accounts’.”
It says: “As we move towards 2012, we expect to be increasingly involved in helping with the development of personal accounts and considering how their implementation will change the dynamics of the DC market and the risks facing members. Our aim is the improvements we have pursued in the DC market will provide a sound foundation for the introduction of Personal Accounts.”
Tony Hobman, chief executive of the Pensions Regulator, says the organisation has built a strong basis for further development relating to its core themes of strengthening scheme funding, improving the governance of work-based pensions, addressing risks to DC scheme members and delivering risk-based regulation.
He adds: "Our overriding goal is to meet our statutory objectives, working efficiently and in partnership with the regulated community, government and representative bodies. This plan will enable us to deliver against the statutory objectives and key challenges set out in our medium term strategy.”
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