The Pensions Regulator (TPR) could be having trouble finding a replacement for its outgoing chief executive, Tony Hobman, due to possible problems with funding costs, which may mean – among other things - a significant drop in salary for the position.

According to The Times, a successor has not yet been found because the Department for Work and Pensions’ (DWP) has failed to agree on a pay package.

Pensions Age has learned of claims that an individual has not been appointed as the DWP does not want to pay public sector executives more than the Prime Minister’s salary of £142,000. Hobman reportedly earned a £210,000 salary in his role.

Ben Shaw, development director of Occupational Pensions Trusts (OPT), said that the salary may only be part of the issue.

“The hunt for a successor is going to have to balance the pay on offer against finding a quality candidate willing to take on a huge responsibility. A salary of £142,000 plus, one would assume, a very generous pension isn’t such a bad offer. But perhaps this is not being seen as a plum job by many of those in the industry. This might be because TPR is almost inevitably going to be facing funding costs that will require good services to be maintained on a tighter budget. Or they may be concerned that the Pension Protection Fund could run into funding problems and people really don’t want the flack and fall-out to damage their future career prospects.”

The DWP told Pensions Age that the appointment is being pursued in the normal manner: “There is an acting chief executive in place. We will shortly be recruiting a permanent successor.”

TPR said it was unable to add anything further to the DWP’s statement.

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