The Work and Pensions Select Committee (WPSC) has written to The Pensions Regulator (TPR), querying why it took the regulator so long to contact the Universities Superannuation Scheme (USS) over concerns raised by a whistleblower.

In the letter to TPR CEO Charles Counsell, WPSC chair Frank Field asked why the regulator took until 3 April 2019 to write to the USS, after it was granted permission to contact the scheme by a whistleblower, Jane Hutton, on 31 October 2018.

Field noted that the concerns were initially raised on 20 March 2018, before the whistleblower revealed their identity in October.

Hutton claimed that the USS impeded her from investigating the scheme’s £7.5bn deficit reported in November 2017, which may have prompted the universities to suggest closing the DB scheme.

She also said that she had concerns that there was an error in an error in the way retirement rates were calculated, which could have inflated costs as it was assumed that members retired earlier than they did.

In the letter, Field wrote: “The USS Joint Expert Panel said that TPR appeared to have disproportionate influence on the valuation and may have steered to the employer.

“How does TPR intended to respond to these findings?”

The scrutiny comes on the same day as Counsell gave evidence to the WPSC regarding the Arcadia pension scheme, as well as answering questions on BHS, Carillion and the relationship between the PPF and TPR.

Field wrote: “I would also be grateful if you could please outline for the committee TPR’s principles and approach to planned deficit reduction contributions when a scheme’s valuation changes.”

Earlier this month (17 June), the USS was reprimanded by TPR after it distorted the view of the regulator in a document proposing higher contributions by employers and members by describing TPR’s position on discount rates incorrectly.

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