Consultation: Strengthening the Pensions Regulator's Powers

Pension scheme trustees and employers are required to notify TPR of certain prescribed events under section 69 Pensions Act 2004.

The government intend to extend the type of events that trustees and employers, in relation to a scheme, are required to notify TPR about with two additions, the:

• Sale of a material proportion of the business or assets of a scheme employer which has funding responsibility for at least 20% of the scheme’s liabilities.
• Granting of security on a debt to give it priority over debt to the scheme.

At the same time, the existing notifiable event of wrongful trading will be removed.

A new section 69A has been added to the Pension Act 2004 which introduces the duty for a relevant person to give notices and statements to TPR in respect of certain events.

• This information is required at a later point in a corporate transaction than a notifiable event notification.
• The draft regulations now under consultation apply this notice and statement requirement to the two proposed new notifiable events plus an existing notifiable event.

The views of interested parties are sought on any impacts of the proposed changes, including any unintended consequences that the draft regulations might have on specific groups.

The consultation opened on 8 September 2021 and runs until 27 October 2021. Responses can be sent by email or post.

Useful guides on this topic

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Auto-enrolment: Workplace pensions (subscriber guide)
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Pension contributions: Personal or company?
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External links

Consultation: Strengthening The Pensions Regulator's Powers: Notifiable Events (Amendments) Regulations 2021

Consultation questions

Q1: Do you think that the definitions capture the policy intention? If not, please explain why.

Q2: Can you see any unintended consequences of these amendments?

Q3: Are there any unintended consequences of this approach? What is the impact on multi-employer schemes and the employers? Is there a simple way of apportioning liabilities that would work for all multi-employer schemes?

Q4: Do you agree that “when the main terms have been proposed” is an appropriate point for the notice and statement to be issued? Can you see any unintended consequences of using this definition? At what point would it be reasonable for employers to have discussions with the trustees about the intended transaction?

Q5: Does the definition of relevant security meet the intention that it will apply to granting of security which may affect the employer’s ability to support the scheme? Are there any unintended consequences? Should other specific types of security be included or excluded? Is it appropriate to specify a 25% threshold by reference to revenues or assets as proposed?

Q6: Do you agree this is a reasonable definition of revenue and assets? If, not, how do you consider they should be defined?

Q7: Do you consider that 25% of the revenue or assets is an appropriate level? If not, please indicate what you think is an appropriate level and why?

Q8: Do you agree that disposals which have taken place or agreed within 12 months of the date of the notifiable event should be taken into account when calculating the 25% threshold? If not, please explain why.

Q9: Does this list provide all the information which should be notified to The Pensions Regulator? If not, what else should be included?

Q10: Do you think that this meets the policy intention or are there any unintended consequences?