The Pensions Regulator (TPR) has shared updated administration guidance intended to help schemes deliver high-quality services that safeguard benefits and build trust in the pensions system, arguing that strong administration is “fundamental” to good member outcomes.

The guidance, which replaces TPR’s previous guidance on the administration of defined contribution (DC) schemes and applies to all scheme types, provides practical steps for governing bodies to ensure high-quality administration that meets regulatory expectations.

In particular, TPR has updated the 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, including 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 in-house administration.

It also introduced 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.

The regulator has also broadened the performance measurement beyond time-based commitments for true reflection of the quality and accuracy of the administration service.

TPR said that governing bodies should use this guidance as a practical framework to strengthen administration, improve oversight, and build effective partnerships with administrators.

This comes at a “pivotal moment” for the pensions industry, as TPR recently stressed the need for good-quality administration, arguing that whilst it was once seen as a back-office function, it is now recognised as a critical driver of good outcomes for savers.

And with increasing regulatory change, rapid technological transformation, and rising member expectations, TPR argued that the role of administrators has never been more important.

Commenting on the updates, TPR 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.”

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