The Pensions Regulator (TPR) has published revised administration guidance designed to help schemes and their administrators deliver high-quality services that safeguard member benefits and build trust in the pensions system.
The guidance provides practical steps for governing bodies to ensure high-quality administration that meets regulatory expectations. It replaces TPR’s previous Administration of a DC Pension Scheme guidance and applies to all scheme types.
TPR is issuing this guidance at a pivotal moment for the pensions industry. Administration, once seen as a back-office function, is now recognised as a critical driver of good outcomes for savers. Insights from TPR’s recent market oversight report highlighted progress and persistent challenges around governance, technology, data, and resilience. With increasing regulatory change, rapid technological transformation, and rising member expectations, the role of administrators has never been more important.
The guidance aims to protect members by ensuring accurate, timely, and secure administration of pension benefits and provide good administration services to members. It promotes robust planning and maintaining administration to reduce risks of errors, delays, and breaches.
TPR’s Executive Director of Market Oversight, Julian Lyne, said: “High-quality administration is fundamental to delivering good outcomes for savers. Our updated guidance sets clear expectations for schemes and administrators to work in partnership to strengthen governance and ensure resilience in the pensions system. Trustees and scheme managers remain accountable for administration – even when tasks are delegated.
“We expect schemes and administrators to refer to this guidance regularly to ensure they are following good administrative practices. For example, it provides important information on maintaining an administration IT system and signposts trustees to TPR’s cyber security guidance.”
TPR has refreshed guidance to provide clearer clarifications on key administration activities and considerations, specifically around member communications, data management, disaster recovery and business continuity planning. This guidance also introduces several new elements such as:
Calling out the importance of having a policy to plan administration and having robust arrangements in place to enable the effective oversight of outsourced or inhouse administration.
Introducing guidance on IT system governance, including assurance on system adequacy, change control processes, technological benefits with proper oversight, and regular backups; and linked up with TPR’s existing cyber guidance.
Broadening performance measurement beyond time-based commitments for true reflection of the quality and accuracy of the administration service.
Governing bodies should use this guidance as a practical framework to strengthen administration, improve oversight, and build effective partnerships with administrators.
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