Marvin OnumonuThe Pensions Regulator (TPR) has told trustees and administrators to work more closely to deliver better administration and improve outcomes for pension savers.
TPR shared findings from a year of speaking to 15 pension administrators, showing progress in the sector but also areas that still need work.
Research found administrators are now more strategic and resilient; however, challenges remain with changes to regulations, technology, staffing, data and cyber security.
Julian Lyne, interim executive director of market oversight at TPR, said: “Administration remains central to good saver outcomes and so we welcome these improvements.
“But more work is needed to reach the standards we expect.
“Investing in technology and new skills, improving data, pushing for better governance and transparency, and strengthening resilience to cyber-attacks, should help reduce risks and improve outcomes for savers.”
Lyne added: “We expect administrators and trustees to reflect on these findings and work together to identify ways to improve administrative practices to better serve savers.
“As the market evolves, trustees must take greater responsibility and accountability for ensuring those improvements happen.”
TPR’s work with administrators focused on financial sustainability, technology and innovation, risk and change management, and cyber resilience.
The latest oversight report is aimed at everyone involved in running occupational pension schemes.
TPR said there are opportunities to improve governance, service and outcomes for savers.
To support this, TPR will develop a new administration strategy, continuing direct engagement with administrators, updating its administration guidance with clearer expectations for trustees, and promoting better collaboration and transparency between trustees and administrators.
TPR will also work with the industry in working groups and advising government on future law changes.
