Defined benefit pension schemes Contents


Terms of reference


Key Facts

1 Context


DB schemes

The sector and its regulation

Scheme deficits

Forthcoming Green Paper

2 Promoting well-run schemes

The trustee-sponsor relationship


Scheme governance


Governance and scheme performance

Incentivising good governance


Advantages of consolidation

Partial consolidation

Barriers to full consolidation

Achieving consolidation

An aggregator fund

Cashing-in small DB pension pots

3 Identifying and intervening in potential problem schemes

Regulatory approach

TPR’s objectives

A more proactive TPR

Triennial valuations and recovery plans

The valuation process

The frequency of valuations

The speed of valuations and recovery plans

Flexibility in recovery plans

Length of recovery plans

The PPF Levy

Balancing risk

Mutual societies

4 Stressed schemes

Binary outcomes – subsist or collapse

Regulated Apportionment Arrangements

Greater flexibility

The case for reform

Deferred pay


Statutory employer override of scheme indexation rules

Empowering trustees to intervene in the interests of members

Compulsory wind-up of schemes

5 Anti-avoidance

The PPF lifeboat

Moral hazard and TPR’s anti-avoidance powers

Adequacy of anti-avoidance measures


Infrequent use of powers


A voluntary and rarely used process

Mandatory clearance

Punitive fines as a nuclear deterrent

6 Preventing another BHS

Conclusions and recommendations

Formal minutes


Published written evidence

List of Reports from the Committee during the current Parliament

© Parliamentary copyright

20 December 2016