A more joined-up approach to implementing changes for the pensions industry is needed to reduce regulatory pressures, RSM UK has argued, urging The Pensions Regulator (TPR) to be “sympathetic” to trustee challenges.

As reported by our sister title, Pensions Age, the firm warned that trustees are facing “unprecedented workloads” in 2022 amid a “plethora” of changes, including TPR's new defined benefit (DB) funding framework, simpler annual benefit statements, new anti-scam transfer requirements and increasing environmental, social and governance (ESG) disclosures.

It also suggested that, as many pension trustees undertake their roles on a voluntary basis alongside their day jobs, the time allowed by employers for training and meetings will need to increase to allow trustees to understand and meet the increasing requirements.

RSM UK head of pensions, Ian Bell, commented: “With so much new regulation either launching recently or looming on the horizon, pension trustees will have a full workload to look forward to in 2022.

“They are returning from the Christmas break with a daunting to do list, and with TPR’s new criminal sanctions powers still fresh in their minds.

"Top priority will be how to hit the deadlines from the deluge of new demands and regulations that have coincided from a variety of governing bodies.

“This, in addition to their BAU work, will be an unenviable task which will place huge pressure on trustee boards and their advisors in understanding the requirements, let alone implementing the changes on matters such as ESG, Taskforce on Climate-related Disclosures (TCFD) and the new funding framework."

In light of these concerns, the firm urged the regulator to avoid introducing any further new regulation this year and to take "a pause in the cycle to give trustees some breathing space for implementation".

"This could start with a reasonable implementation timetable from The Pensions Regulator for the new code of practice," Bell suggested.

“As a trustee myself I can see the pressure they are under from both sides of the fence. The industry does not seem to be taking a joined-up approach to this issue, and there appears to be little consideration for how much additional work these changes will create for trustees, both now and in the coming years.

“We are therefore asking TPR to be sympathetic to the pressures pension trustees are under, particularly smaller schemes with limited governance budgets, and to avoid introducing any further new regulation this year.”

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