The reviewing process can also be helpful in heading off investigations by TPR at the start. TPR’s extensive investigation powers and broad control of the timeline, mean that costs and management time involved in responding to TPR can mount significantly.
Being prepared to justify actions in advance can establish a narrative with the TPR, showing responsible behaviour and will save having to reconstruct decision processes.
In any case, a cursory glance at pensions will not be sufficient. Management will want to show that proper thought has been given to concerns and that advice has been considered and accepted where appropriate. All of this process should be logged.
If TPR does start an investigation in relation to a pension scheme, businesses should have a plan for responding to TPR and trustees. Prior preparation and organisation of materials will help make this a much easier process.
Looking at pensions over the horizon
It is suggested that the criminal offences will begin to apply in Autumn 2021. Many of the new laws will trickle through as regulations and guidance are published.
Given the number of businesses hit by Covid-19, advisers will be watching how TPR uses its new powers. They will also be interested in how these powers sit alongside developments in other areas - such as the speed at which companies should pay to cover deficits in their pension schemes.
While the number of defined benefit pension schemes may continue to shrink, the new Pension Schemes Act 2021 means that they should still be very much in the thoughts of directors.
Simon Evans is an associate and Kate Richards is a partner in the CMS Pensions team
