Regulator suspends 100 DC trustees in a year

23 July, 2010

The Pensions Regulator suspended more than 100 trustees of defined contribution schemes during 2009-10, protecting over £30m of scheme assets, the body’s annual report has revealed.

In addition, it barred our individual trustees and four corporate trustees from pension duties – more in one year than it had barred in the previous four.

The Regulator’s actions led to the recovery of over £35m of previously misappropriated scheme funds and involved co-operation with the Serious Fraud Office, HM Revenue & Customs and the Financial Services Authority,

Acting chief executive Bill Galvin, acting chief executive, said the coming year was likely to be even busier, with an “unprecedented number of difficult and complex cases” and an increase in potential avoidance activity.

"Vital work continues on designing and building a robust compliance regime to ensure that employers meet their new duties from 2012. We are also focusing on risks faced by DC schemes which will be the vehicle into which most new members will be auto-enrolled, and will be setting out our thinking in more detail later in the year.

"With an increasing workload and in an environment of constrained public expenditure, we will continue to target our resources at the areas of greatest risk to members, and to reduce the risk of calls on the Pension Protection Fund," he said.

During the year, the Regulator scrutinised over 2,000 DB recovery plans, as well as developing the framework trustees will need to meet their duties in the 2012 reforms. The Regulator said it was able to fulfil its duties while remaining within it operating budget of £27.4m.

David Norgrove, chair of the Pensions Regulator said the year had seen “huge pressures” on pension schemes, with trustees and employers being forced to work more closely than ever to secure member benefits

“We have emphasised the flexibility in the funding regime – whilst making it clear that funding targets must be set prudently. A recent review of our risk-based approach, by the Better Regulation Executive and National Audit Office, confirmed that the regulator has adopted an effective and proportionate approach. It’s vital we continue to build on this during the coming year," he said.