UK - The Pensions Regulator (TPR) has appointed Deloitte to conduct a review of the existing defined contribution (DC) regulatory framework and make recommendations for a new "robust" framework ahead of the 2012 reforms.
TPR initiated a tender search in April for a consultant to review the risks around DC schemes. It noted that the environment for DC schemes is becoming more complex and this would only be increased by the introduction of auto-enrolment. TPR is responsible for employer compliance with the new regime.
It has now confirmed that Deloitte has been awarded the contract from among five tenders based on a range of criteria, including methodology, price and the project team. (See earlier IPE article: TPR seeks consultancy for DC review)
Under the terms of the contract, Deloitte's remit will include identifying gaps in the current regulatory framework, propose a new framework that is robust and fit for purpose, and explain how it will be implemented.
A spokeswoman for TPR said: "As we focus now on enabling informed choices at retirement and encouraging employers to engage with their employees about pensions, we are also deepening our understanding of the risks members face in DC pensions. Deloittes are helping us with some of this analysis."
The review follows a recent focus by the TPR on DC governance, specifically on retirement options and employer engagement, including statements to both employers and trustees in which TPR signalled its willingness to enforce improvements in DC governance. (See earlier IPE article: TPR 'willing to enforce' DC improvements)
In addition, the regulator has highlighted that new employer compliance requirements to be introduced as part of the 2012 reforms will result in a "tougher" regulator to ensure employers follow the rules. (See earlier IPE article: TPR warns of tougher stance under new ECR)
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