Use of powers
23. In their 2003 report, our predecessors found
that Opra had inadequate powers, for example, in terms of enforcing
compliance.[62] TPR has
been granted additional powers which include being able to act
against employers who fail to support adequately a scheme, by
issuing a Financial Support Direction or Contribution Notice,
as well as widening the circumstances in which TPR can act against
trustees for not being fit and proper.[63]
24. TPR considers that these powers are adequate
for its current role.[64]
In its survey of those who run pension schemes, 73% considered
that TPR had adequate powers (with 8% considering that it did
not).[65] Legislation
will be needed, however, when TPR becomes the regulator of the
planned personal accounts scheme, and the new Pensions Bill is
intended to provide for this.[66]
25. To date TPR has used its education and enablement
activities with those who govern pension schemes in preference
to using enforcement action.[67]
It has only issued two determinations to issue a financial support
directive and disqualified one trustee.[68]
TPR considers that the threat of using its powers has meant that
it has not yet had to use them widely, and some of its new powers
remain unused.[69]
Transparency and scheme understanding
26. As well as protecting members of a particular
scheme, the value of enforcement is in educating the market as
to TPR's requirements and demonstrating that it will take action
if it needs to protect members' benefits.[70]
To achieve this TPR needs to be transparent in its decision making.
Prior to September 2007, however, TPR took the view that, because
of issues of confidentiality and the risk of gaming, it was better
to publish information on its determinations when making use of
its enforcement powers on an exception basis only.[71]
In September 2007, TPR adopted a presumption in favour of publication
in all future determinations except in special circumstances such
as where there are commercial confidentiality issues.[72]
Following our examination, TPR advised us that they intend to
publish those determinations made previously, unless there was
a good reason not to do so, such as where publication would give
rise to adverse market behaviours or disclose sensitive personal
data.[73]
59 C&AG's Report, para 4.17 Back
60
C&AG's Report, Figures 12 & 13 Back
61
C&AG's Report, para 4.19 Back
62
Committee of Public Accounts, OPRA: Tackling the Risks to Pension
Scheme Members, para 10 Back
63
C&AG's Report, para 4.3 Back
64
Qq 26, 64 Back
65
Qq 73,74; C&AG's Report, para 4.5 Back
66
Q 64 Back
67
C&AG's Report, para 4.17 Back
68
Qq 9, 10, 24, 25 Back
69
C&AG's Report, para 4.2 Back
70
C&AG's Report, para 4.19 Back
71
Qq 75-80 Back
72
Qq 79-82; C&AG's Report, para 4.21 Back
73
Ev 12 Back
