Pensions Bulletin 2024/18
Our viewpoint
9 May 2024
Pensions Regulator issues its Corporate Plan
The Pensions Regulator has issued its latest corporate plan, setting out its priorities for the three years ending 31 March 2027.
The Regulator has no less than 19 key priorities for 2024/25 that are set out over four subject areas, but the Regulator goes on to say that its key challenge in 2024/25 will be embedding the new regulatory funding regime for DB schemes while also increasing its attention on DC value for money, good governance and administration.
Looking beyond 2024/25 the Regulator will be increasingly shifting its focus from embedding the DB funding regime towards the delivery of the DC value for money framework. This will include piloting the framework with the DC master trusts market on a voluntary basis from 2025/26.
The Regulator itself is to engage differently with the market, by reference to its three recently launched new regulatory directorates (see Pensions Bulletin 2024/08).
On finances, the Regulator’s 2024/25 budget is expected to be £112.1m, which (unusually) represents a £10m reduction from the 2023/24 budget. This reduction is so it can deliver on efficiency savings agreed as part of a three-year funding settlement in 2021. It is not clear at this stage what budget it will have for 2025/26 and 2026/27.
The Regulator concludes with 23 “priority outcomes” for 2024/25.
Comment
As ever, the plan contains a long list of intended activities, this year wrapped up with the theme of moving towards a landscape of fewer, larger pension schemes that deliver good outcomes for savers. However, getting to a landing on many of the Regulator’s activities is dependent on good progress being made on policy across Government and ministerial decisions being taken. Given where we are in the political cycle, this will be a challenge. The Regulator’s own resourcing issues may also impact what it is able to deliver.
Pensions dashboard data standards updated
The Pensions Dashboards Programme has published an updated version of its data standards. This version 1.2 replaces the draft version the PDP issued for consultation in July 2022 (see Pensions Bulletin 2022/28) and on which further engagement with the pensions industry took place in 2023.
The new version is over 130 pages long, but this is because much of it tabulates aspects of each data item that will need to be returned to the dashboard. Strictly speaking, the standards apply to trustees or managers of occupational pension schemes (and the managers of stakeholder and personal pension schemes) connected to, or required to connect to, the pensions dashboards ecosystem. However, as many occupational pension schemes are likely to connect via a third party, in practice it will be these third parties that apply them.
This Pensions Bulletin does not constitute advice, nor should it be taken as an authoritative statement of the law. For further help, please contact David Everett at our London office or the partner who normally advises you.
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