The Pensions Regulator plans to publish a discussion paper to assess value for money as part of its new corporate strategy.
The document, published yesterday (March 10), sets out the watchdog’s 15-year vision to protect savers, and constitutes a “blueprint for the future of pensions regulation”.
The regulator said it would immediately start to deliver on the strategy’s five priorities: security, value for money, scrutiny of decision making, embracing innovation, and bold and innovative regulation.
TPR said the commitment on value for money was to move quickly, starting with working with the Financial Conduct Authority to assess what represents value for savers.
TPR chief executive Charles Counsell said: “Today we launch the strategy for our future, putting the saver at the heart of all that we do, with a clear roadmap of how we will deliver effective change on the ground to enhance and protect workplace pensions now and in the years to come.
“Millions of savers rely on pensions to replace income later in life. So as a regulator, we are squarely focused on protecting savers’ pensions in the short and long term.
“That remains our core aim. But we must also adapt to a rapidly changing pensions landscape and plan for the future.”
Counsell added that as defined contribution saving becomes the norm for millions, better security for savers and value for money should be sought.
As part of this plan, one of the regulator’s key focuses will be a new climate change strategy to ensure schemes are investing in the best interests of members.
This was outlined in TPR’s response following a series of roundtable discussions within the industry last year, in which more than 40 stakeholders took part.
Changes resulting from these discussions include a firmer recognition of savers’ decisions consistent with their values, environmental, social and governance and climate change, which the regulator said would mean a greater demand for stewardship.
Included in these revisions was a greater emphasis on protecting and enhancing outcomes for all kinds of savers, in addition to the clearer recognition of the impact of protected characteristics such as disability, gender, age and ethnicity on saver outcomes.
Ruth Gillbe is a reporter at FTAdviser's sister publication Pensions Expert
