TPR’s Aggressive Crackdown Sinks Poor‑Value Schemes

TPR’s Money‑Making Mission: Making Pensions Pay Off

Why the regulator is turning the tide for smaller pension schemes

New rules hit the road in October 2021 – If a pension trust owns less than £100 million, trustees must give members a true value check, not just the usual “we’ve got your back” spiel.
If they miss the mark, they’ve got one of two options: make a game‑changing improvement plan or hand their members over to a better‑valued scheme.

TPR’s crack‑pot for compliance

TPR launched a “value swipe‑test” to sniff out any lazy trustees. The pilot has already shown that 16 % of the schemes being tested are jumping ship, winding down because they’re simply not giving enough bang for the buck.

Fines are coming – and they’re not small potatoes

Already slapped on £12,500 with a corporate trustee, and that penalty is featured in TPR’s upcoming compliance bulletin (July‑December 2023). The next edition will hit next spring.
More fines are on the way as TPR gears up to scrutinise defined‑contribution scheme returns.

TPR’s thoughts, straight from the front desk

Mel Charles, TPR’s Interim Director for Frontline Regulation said: “Where trustees are found to be in breach of their duties on value, we’ll want to understand how they’ll improve. But, if they can’t or won’t, we expect them to transfer members to a better-value scheme and consider winding up their scheme. It is encouraging that our initiative has shown schemes are now actively choosing to wind up in the face of the new regulations.”