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The Regulator Calls…

The Pensions Regulator calls for the regulation of public service pension schemes starting April 2015. This article discusses the regulatory tools, governance arrangements, and key legislation related to these schemes.

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The Regulator Calls…

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  1. The Regulator Calls… Regulation of public service pension schemes from April 2015 Bob Scruton DCLG: Firefighters Scheme Governance Meeting 24 April 2013

  2. The Regulator Calls…Private sector remit • Pensions Act 2004 • Regulate work based pensions • Statutory objectives: • Protect member benefits • Reduce calls on PPF • Auto enrolment compliance • Promote good administration • Scale of TPR private sector remit: DB 13 mn members 6K schemes; • DC 3 mn members 41K schemes; Auto-enrolment – all employers • Regulatory approach – Educate, Enable and Enforce • Set of regulatory tools

  3. The Regulator Calls…Application to public service schemes • Pensions Act 2004 regime • Work based pensions • Promote good administration • Pensions legislation? • Structures? • Regulator’s risk based approach • Conclusion: no significant attention

  4. The Regulator Calls…Public Service Pensions Act 2013 • Mainly reform of benefit design • Governance arrangements • Scheme regulations • Scheme advisory board • Scheme manager • Pension board • Explicit regulatory oversight • Governance and administration – not funding • Largely analogous to private sector • Public service pension schemes defined

  5. The Regulator Calls…Public service pension schemes Members Employers (million) L Local government 4.7 7,800 NHS 2.9 1,300 Teachers 1.9 5,300 Civil service 1.7 300 Armed forces 0.8 10 L Police 0.3 60 L Fire 0.1 70 -------- ---------- Total 12.4 14,840 L = local administration -------- ----------

  6. The Regulator Calls…Public Service Pensions Act 2013 • Secondary legislation • Scheme regulations (s3) • Treasury directions on benefit information statements (s14) • Treasury directions on information about schemes (s15) • Records (s16) • Commencement orders

  7. The Regulator Calls…Between now and 2015 • Understanding the schemes and their issues • Publicly available information • Survey • Scheme regs • Regulatory materials • Regulatory strategy and policies • Code of practice • Guidance • Public service scheme website including support material • Build the regulatory team

  8. The Regulator Calls…Code(s) of practice • Pension board knowledge and understanding • Conflicts of interest • Records • Internal controls • Scheme information • Member disclosure • Internal dispute resolution • Late payment of contributions • Whistle-blowing

  9. The Regulator Calls…What will regulation look like? • Educate, Enable and Enforce • PACTT • Consistent with private sector approach • Determined nearer to April 2015 • Driven by the extent of breaches of pensions legislation • Current thoughts

  10. The Regulator Calls…Questions… Over to You ? Bob Scruton and Robert Plumb The Pensions Regulator Napier HouseBrightonBN1 4DW tel: 01273 627611email: bob.scruton@thepensionsregulator.gov.uk email: robert.plumb@thepensionsregulator.gov.uk

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