Due to the COVID-19 situation, The Pensions Regulator has decided that it can adopt a more flexible approach in a number of areas to what is normally expected of reporting and when enforcement action would be appropriate under the current circumstances.

This will apply until 30 June 2020, but The Pensions Regulator will continue to review whether or not more specific flexibility is required in the weeks following this date and, in fact, whether the date should be extended. They are to take “a reasonable, pragmatic and proportionate approach” to their regulatory work during this time.

Someone involved in running an occupational pension scheme may need to report certain information to The Pensions Regulator - including when the trustees are in breach of certain obligations imposed on them. However, the new guidance states that “if a breach will be rectified in less than three months and does not negatively impact savers”, then there is no need to report it but records should be kept of decisions made and any actions taken.

In making any decisions about whether or not to take regulatory action in respect of any breaches of administrative and compliance requirements, The Pensions Regulator has said that will be decided on a case-by-case basis. A flexible approach will be adopted in respect of granting longer periods to comply - and COVID-19 will be taken into account.

Annual benefit statements; chair’s statements; employer-related investment and master trusts are among a number of areas of reporting and enforcement for which the easing of the regulations would not be appropriate.  

Nicola Parish - The Pensions Regulator Executive Director of frontline regulation - said:

“The pressures caused by Covid-19 have been felt throughout the pensions industry. That’s why we have taken steps to do what we can to reduce the regulatory burden on trustees, employers and providers at this unprecedented time. We will take a reasonable, pragmatic and proportionate approach to our regulatory work during Covid-19. However, there are a number of areas, particularly those regulations designed to directly protect savers’ interests, where we are not easing our requirements. Trustees, employers and providers should read The Pension Regulator’s Covid-19 guidance so they are clear on what is expected of them at this time.”