Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • July 2019
07

Pension schemes falling short of TPR governance expectations

Open-access content Tuesday 23rd July 2019 — updated 5.50pm, Wednesday 29th April 2020

A large number of UK pension schemes are failing to deliver on The Pensions Regulator’s (TPR) governance and trusteeship expectations, a new survey has found.

2


The findings show that only 54% of defined benefit (DB) schemes are engaging with integrated risk management (IRM), and that 21% have not identified issues with member data.

The researchers said a lack of engagement and quality governance is particularly visible among smaller schemes where costs and resources tend to be more stretched.

They also found that only 22% of DB schemes have a defined plan of action if their funding level falls, and that just 34% believe scheme decisions are usually made quickly.

Rob Wallace, principle at XPS Pensions Group, which carried out the research, said the findings imply that the vast majority of schemes have room for improvement.

"Especially around IRM," he continued. "Trustees need to embrace it as it is a fundamental part of the scheme funding framework and a valuable tool to get schemes where they want to be.

"This is particularly true of smaller schemes, but IRM can be applied pragmatically and still add significant value even where budgets and resources might be limited."

TPR set its expectations for governance and risk management through its 21st Century Trusteeship Campaign in 2017/18, targeting trustees, scheme managers, employers and advisers.

However, the XPS survey found that only 22% of DB pension schemes currently believe they "manage conflicts well".

And although 70% of schemes have plans to improve their member data, only 42% are monitoring progress. This is despite 94% believing their governance is above average.

Wallace said it is crucial that the meeting and decision making process within schemes runs effectively to give the best chance of good outcomes for members.

"Good governance is key to having a well-run pension scheme, and a robust governance framework does not have to be overly onerous," he continued.

"The main thing for schemes to ensure is that sufficient time is spent managing important strategic issues."


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our July 2019 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Insurers rapidly adopting cloud technology

More than half of insurance companies are developing new IT operating models to support cloud technology, a global survey by consultancy firm Accenture has uncovered.
Monday 22nd July 2019
Open-access content
2

Brexit ranked a bigger solvency risk than IFRS 17

Non-life insurers across the UK and Ireland think that Brexit poses a bigger risk to their solvency than IFRS 17, an annual survey by Lane Clark & Peacock (LCP) has uncovered.
Wednesday 24th July 2019
Open-access content
2

Investment giants predict huge boom in alternative protein market

The alternative protein market will see its value rocket from $19.5bn (£15.6bn) to $100bn within 15 years, an investor network with over $5trn in assets under management has predicted.
Wednesday 24th July 2019
Open-access content
2

Cyber crime to cost global economy $5.2trn over five years

The global economy will lose $5.2trn (£4.19trn) over the next five years because of cyber crime, with insurers, banks and capital markets facing a $700bn hit.
Friday 26th July 2019
Open-access content
2

Insurers win more than two-thirds of disputed claims

UK companies that take their insurers to court or public arbitration over the non-payment of a claim only win around one in three cases, new research has found.
Friday 19th July 2019
Open-access content
2

Pension contributions hit record high

Employer contributions into defined contribution (DC) pension schemes at FTSE 100 companies have reached a record high, research from Willis Towers Watson (WLTW) has uncovered.
Thursday 18th July 2019
Open-access content

Latest from July 2019

2

TPR tells small pension schemes to quit market

The Pensions Regulator (TPR) has blasted the “unacceptable” performance of small pension schemes in the UK and told them to improve or leave the market.
Friday 2nd August 2019
Open-access content
2

Insurance M&A growth hits four-year high

There was a bigger increase in mergers and acquisitions (M&A) completed by insurers in the first half of 2019 than in any six-month period over the last four years.
Friday 2nd August 2019
Open-access content
2

BlackRock loses $90bn investing in fossil fuels

The world’s largest fund manager, BlackRock, has lost more than $90bn (£74bn) investing in fossil fuel companies over the last decade, according to economists.
Thursday 1st August 2019
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 07

2

TPR tells small pension schemes to quit market

The Pensions Regulator (TPR) has blasted the “unacceptable” performance of small pension schemes in the UK and told them to improve or leave the market.
Friday 2nd August 2019
Open-access content
2

Insurance M&A growth hits four-year high

There was a bigger increase in mergers and acquisitions (M&A) completed by insurers in the first half of 2019 than in any six-month period over the last four years.
Friday 2nd August 2019
Open-access content
2

BlackRock loses $90bn investing in fossil fuels

The world’s largest fund manager, BlackRock, has lost more than $90bn (£74bn) investing in fossil fuel companies over the last decade, according to economists.
Thursday 1st August 2019
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Pricing Associate

Scotland / England, London
Up to £60000 per annum
Reference
149081

Outside IR35 - Reserving Contract - 6-8 months

London (Central)
Daily rate contract - outside IR35
Reference
149079

Actuarial Analyst - Longevity Reinsurance

England, London
Up to £55000 per annum
Reference
149080
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ