The Pensions Regulator

Pensions Regulator publishes business plan for 2006/07

Ref: PN06-27
25 July 2006

The Pensions Regulator has published its business plan for the year ahead, covering the period April 2006 to March 2007.

The plan, available on the regulator's website, outlines how the regulator will deploy its resources during the year while highlighting some of the expected results.

Principal challenges

The business plan complements the regulator's medium term strategy which was published in April 2006. The medium term strategy outlined the principal challenges for the next three years, which are to:

• strengthen the funding of defined benefit schemes;
• improve the governance of work-based pension schemes; and
• reduce the risks to members of work-based defined contribution pension schemes

The regulator's focus for 2006/07 will be to address these themes in addition to delivering effective risk-based regulation relevant to our environment and stakeholders.

The first three themes seek to address the key challenges identified within the medium term strategy. The further objective of delivering risk-based regulation relates to the way in which the regulator discharges its responsibilities for good governance, such as performance measurement and risk management. The plan also covers how the regulator maintains its links with key stakeholders and develops its operational capability.

Performance indicators

For each theme performance indicators will show the measurement of achievement against each outcome, while the principal activities for 2006/07 that contribute to the achievement of the indicators and medium term outcomes have been aligned accordingly.

The business plan defines the regulator's approach in the coming year and details the outcomes and activities the regulator will pursue in order to address its strategic aims. The plan also sets out how the regulator will continue to develop a flexible regulatory model, utilising the skills of permanent professionals and secondees from the pensions industry.

The overriding goal will be to achieve worthwhile and measurable outcomes whilst using resources efficiently and ensuring that the Pensions Regulator works in close partnership with the regulated community.

To view the business plan visit: www.thepensionsregulator.gov.uk
/pdf/businessPlan0607.pdf

Editor's notes

• The proposed budget for 2006/07 for the regulator is also detailed in the plan along with details of the 2005/06 budget for reference.
• The Pensions Regulator is the regulator of work-based pensions in the UK, with wide and flexible powers under the Pensions Act 2004.
• The powers of the Pensions Regulator include the ability to:
  • collect more detailed scheme information;
  • issue improvement notices and third party notices, enabling the regulator to ensure problems are put right;
  • freeze a scheme that is at risk, while the regulator investigates; and
  • prohibit trustees who are judged not fit and proper to carry out their duties.
  • The Pensions Act 2004 also imposes a statutory obligation on 'whistleblowers' to report suspected breaches of the legislation to the regulator.