TPR Saves £3.5 M for Pensioners After NE C’s Collapse
When Newburgh Engineering Co Ltd (NEC) went into administration in October 2018, its pension scheme—the Newburgh Engineering Co Ltd Pension and Assurance Scheme—found itself teetering on the brink of insolvency. The scheme’s assets had been cunningly shuffled out of the company’s balance sheet into other parts of the wider group. That gameplay hid the money from creditors, endangering the retirees who had been counting on it.
TPR’s Anti‑Avoidance Power: The Big Bad Wolf
The £3.52 M settlement was won through a regulatory intervention report issued by the Pensions Regulator (TPR). They used their anti‑avoidance powers to shine a bright light on the “money‑mixing” that kept pension funds out of reach. TPR then jammed together a multistakeholder graveyard deal that pulled the money back into the scheme.
What Happened? A Quick Checklist
- Asset Transfers: NEC funneled pension assets into other corporate entities as part of a conglomerate reshuffle.
- Administration: When NEC hit the admin‑cliff, the DB pension scheme was left without its funding finger‑point.
- TPR’s Warning Notice: Target companies were put on notice to look after scheme money.
- Global Settlement: A multi‑party gamble that secured £3.52 M back into the pension scheme.
- PPF Transfer: The pension got a friendly makeover, moving its assets into the Pension Protection Fund.
Why It Matters
That payout was less than the full £8.84 M of debt that NEC was legally required to handle under section 75, but it covered the majority of available cash and about 80 % of the estimated assets that could be recovered. For scheme members, that meant a sigh of relief and a lot less administrative hassle.
Message from TPR’s Front‑Line Support Team
Mel Charles, Interim Executive Director of Frontline Regulation said: “Our actions in this case send a clear voice to the corporate world—pension schemes can’t be tricked out of their rightful funds. We’re here to investigate and enforce measures that protect the retirees and the Pension Protection Fund, all while saving resources for everyone involved.
TPR’s Compliance and Enforcement Bulletin
Part of the broader Compliance and Enforcement Bulletin, the bulletin showcases TPR’s robust play from July to December 2023. It’s a testament to the regulator’s full‑scale commitment to keep pensioners safe, even when the business behind their pensions runs into trouble.
In the grand story of pensions, this case is a clear reminder that the regulators will jump in with full force—especially when they spot a company slipping funds under the rug.
Use of AE Powers remains robust
TPR’s Latest Enforcement Bulletin: Quick & Quirky Breakdown
Why This Isn’t Just Another Spreadsheet
TPR has unleashed a fresh bulletin that spills the beans on how it used its frontline regulatory muscle and automatic enrolment (AE) powers to keep savers safe from June to December 2023. The kicker? For the first time, it’s digging deep into local‑authority data—yeah, you read that right. They’re showing exactly where in the UK penalties were slapped down since 2012, and the hotspots for 2023.
Numbers That Matter
- 29,489 Compliance Notices, up from 25,106 in the last period.
- 17,451 Unpaid Contribution Notices, up from 15,994.
- 19,538 Fixed Penalty Notices, up from 17,178.
- 8,400 Escalating Penalty Notices, up from 7,944.
What Does That Mean?
In plain English, TPR is tightening its grip on AE compliance. The uptick across the board—especially the hefty hike in new compliance notices—lines up with expectations, as a big wave of small and micro employers was due to catch up on re‑enrolment duties this half‑year.
TL;DR in One Line
TPR just fired more notices than ever this June‑December stretch, proving its enforcement firepower is both sharp and focused—keeping small businesses in line and savers smiling.
We target non-compliance no matter where in the UK
Automatic Enrolment Enforcement: Making Sure Employers Play Fair
Catherine Nicholson, the interim joint director of Automatic Enrolment, is popping up in the news with a bold reminder: “Most bosses are following the rules, but when they don’t, we step in fast to guard the savings of ordinary workers.”
And it’s not just a claim – it’s backed by data, a fact‑packed bulletin that shows precisely where and who we’re policing across the UK.
What the Bulletin Really Says
- Data is our compass: We pull intelligence from every corner of the country, breaking it down by region and local authority.
- Targeted inspections: If we flag serious non‑compliance, our teams don’t just send emails. They stalk the shop fronts of companies in Scotland, England, Wales, and Northern Ireland.
- Transparency is key: Every enforcement action is laid out publicly so regulators and the public can see what powers we’re exercising.
- Deterrence through visibility: By publishing the details that propel our actions, we keep employers on their toes and motivate them to comply.
Why It Matters for You
Think of it this way: Our job is not about playing office politics. It’s about protecting the hard‑earned future of everyday workers. When a company skips its automatic enrolment duty, the people behind the wheel—those who rely on their pension pots—face risk.
We’re here to flip the script and keep the savings safe, making sure that at the end of the day, the accountant’s advice is the one that says, “You’re covered.”
