Years two and three: cyber security, DB funding code, CDC
Much of the work earmarked for years two and three is a continuation of that begun in year one, but there are also a number of new areas.
TPR will “take a more active role” in years two and three in “helping the market understand and tackle cyber risks”.
The new DB funding code is still to be expected in 2022, while TPR will expand its work with superfunds to accommodate “other innovative DB models” that might emerge.
The Pension Schemes Act made provisions for the emergence of collective defined contribution schemes, and TPR “will have a key role in respect of CDC schemes by authorising and supervising entrants to the market”, the report stated.
Counsell said the plan “reflects the commitments made in our long-term strategy and builds on the work we have done in recent years to be a clear, quick and tough regulator”.
“The landscape ahead is both exciting and challenging and we are determined to embrace ever more change: from the ongoing shift to DC saving and market consolidation, to the emergence of new technologies and the impact of climate change on trustee and employer decision-making,” he said.
TPR comes in under budget
The corporate plan also contains the regulator’s financial results for 2020-21. It spent £102.5m over the course of the year, £2m below the budget agreed with the DWP.
The decrease is largely accounted for by lower publicity and project expenditures, though these were partly offset by increased regulatory case expenditure.
TPR’s budget for 2021-22 is £6.7m higher compared with the full-year spend for 2020-21, largely to account for the cost of the auto-enrolment transformation programme, which will see the regulator embark on a period of insourcing.
Benjamin Mercer is a reporter at FTAdviser's sister publication Pensions Expert