TPR reassures members following volatility; 'lot to be done' before BofE interventions end

The Pensions Regulator has emphasised that defined benefit (DB) pension schemes “were not and are not at risk of collapse" after recent market volatility prompted concerns, although it said that there is still much to be done before market interventions end.

Speaking at the PLSA Annual Conference 2022, TPR CEO, Charles Counsell, confirmed that the regulator is continuing to monitor the situation in the financial markets to assess the impact on DB pension scheme funding and on liquidity.

However, Counsell also stressed the need to reassure members, explaining that although there have been liquidity issues in some funds, that does not mean the schemes themselves are at risk of collapse.

He stated: “We've had to deal with liquidity issues very quickly, but contrary to some media reports, this doesn’t mean that schemes are about to collapse.

"It is very important that we get this message to savings. It's also really important that members of DB or defined contribution (DC) schemes are not spooked into making decisions that they might later regret.

"As with the Covid crisis, we can call on trustees of DB schemes and advisers to continue to review the resilience and liquidity of their investments, risk management and funding arrangements. They should plan accordingly to protect the interests of school members.

"We remain vigilant to the risks and expect trustees to do the same and plan accordingly."

Counsell also urged trustees to read TPR's recent guidance on managing investment and liquidity risks amid the current market conditions.

However, action is still needed ahead of the cessation of the BofE interventions tomorrow (14 October), with Counsell stating: "There's a lot still to be done over the next 24 plus hours. But I hope we'll be in good shape at the end of that period.

    Share Story:

Recent Stories


A time for fixed income
Francesca Fabrizi discusses fixed income trends and opportunities with Goldman Sachs Asset Management Head of UK Pensions Solutions, Fixed Income Portfolio Management, Henry Hughes, in our Pensions Age video interview

Purposeful run-on
Laura Blows discusses purposeful run-on for DB schemes with Isio director, actuarial and consulting, Matt Brown, in Pensions Age’s latest video interview
Find out more about Purposeful Run On

Keeping on track
In the latest Pensions Age podcast, Sophie Smith talks to Pensions Dashboards Programme (PDP) principal, Chris Curry, about the latest pensions dashboards developments, and the work still needed to stay on track
Building investments in a DC world
In the latest Pensions Age podcast, Sophie Smith talks to USS Investment Management’s head of investment product management, Naomi Clark, about the USS’ DC investments and its journey into private markets

Advertisement