Momentum Conference 2011: Review of Workshop C1: Experience of the Pensions Regulators
Momentum Conference 2011: Review of Workshop C1: Experience of the Pensions Regulators
Speaker: Michael Hayles
Summary by: James Godbehere
Most parties who are involved with occupation pension schemes are aware that the Pensions Regulator (tPR) has wide-ranging powers to protect members' benefits. However trustees may have taken too much comfort from tPR's powers.
Michael gave a brief overview of Contribution Notices (where a recipient is required by law to contribute to the relevant scheme) and Financial Support Directives (an employer or associated company is required to contribute to a scheme) to date. He also noted the following limitations in the practical use of tPR’s powers:
• there are a number of (non-trivial) tests that must be satisfied before either can be issued; • each party is required to meets its own costs of any regulatory proceedings;• the Determination Panel is not a court and cannot compel witnesses;• an employer can continue to act (eg moving assets) before the ultimate finding;• powers have only been used so far in insolvencies.
In summary, this session was useful reminder for both those who advise pension scheme sponsors and those who advise trustees of tPR's powers and some of the practicalities around exercising them.