TPR urges continued support for scheme administrators

The Pensions Regulator (TPR) has highlighted the importance of administrators continuing to receive support to help them deliver on priority activities during the Covid-19 crisis.

In a blog, TPR executive director of regulatory policy, analysis and advice, David Fairs, stated that trustees and scheme managers must continue to be “pragmatic and supportive” to ensure that administrators can provide the service required during the pandemic.

In a guidance update in late March, TPR urged scheme trustees to work with administrators to confirm what contingency plans were in place and to select a priority order in the event of under-resourcing.

It noted that Covid-19 had placed “huge additional pressures” on administrators and advised them to prioritise the payments of benefits, retirement processing, and bereavement services.

Fairs praised administrators for the way they had handled the crisis so far, describing them as “instrumental” and “pivotal” in delivering members benefits.

“Without their hard work to keep benefits paid in the face of the Covid-19 crisis, those who rely on that money would have faced real hardship at an already difficult time,” he added.

He conceded that the crisis had caused some administrative issues to “build up”, including non-priority queries left unanswered and data errors, and noted that returning to pre-pandemic normality would not be a simple process.

“Expectations about how quickly administrators may be able to return to discretionary work must be realistic and consider the impact of both a spike in workload and challenges in addressing it,” said Fairs.

Despite this, Fairs emphasised that Covid-19 had “really demonstrated” what can be achieved when trustees and administrators communicate and co-operate.

“This must continue as lockdown measures are eased and in the long term, to provide savers with the services and pensions they deserve,” he continued

“The coronavirus has delivered important lessons we can build on. First, now is the time to recognise the work of administrators isn’t just admin – it’s vital to savers. And second, there are lots of ways administrators can be supported to deliver high-quality work – and we should take every opportunity to do that.”

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