DB and hybrid scheme returns
The Pensions Regulator (TPR) has published additional information and resources to help prepare for completion of DB and hybrid scheme returns in 2024. The return will be in one part (in the previous scheme return for completion in early 2023, additional questions were issued using a separate online form) and will include new questions requesting information about fiduciary managers and investment consultancy providers. TPR will issue return notices from the end of January and they must be submitted using the online Exchange system by 31 March 2024.
WTW comment
With effect from 1 October 2022, TPR took over responsibility
for monitoring compliance with the requirements from the
Competition and Markets Authority regarding fiduciary manager
tenders and setting/reviewing objectives for investment
consultancies. As such, we had expected new questions to be
included in the 2023 scheme return but, in December 2022, TPR
advised that they were instead planning to run a separate exercise.
We welcome TPR's announcement that it will instead incorporate
the questions into the scheme return – and, indeed, that
there will be no separate forms to complete for this year.
In November 2023, the Government responded to the Work and Pensions
Committee report into Defined Benefit pensions with Liability Driven
Investments. It stated that TPR would be introducing new
questions to the scheme return to improve TPR's oversight of
asset liquidity outside LDI mandates. It appears that these
questions will be introduced in a later year. The intention is for
TPR to have confidence that buffers can be replenished in a timely
fashion in the event of severe market movements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
