The Pensions Regulator (TPR) has emphasised the importance of transparency when discussing pay gaps and equality, diversity and inclusion (EDI) issues, arguing that this is a ‘small but important’ part of making workplace pensions work for all savers.

In a blog post, TPR equality, diversity and inclusion lead, Sandisiwe Dhlamini, noted that TPR has gone beyond the legal minimum regarding EDI by publishing pay gap data this week for disability, ethnicity, and sexual orientation as well as gender.

“As a regulator, effective decision-making from a diverse and inclusive workforce is important,” she stated. “That’s why our EDI strategy covered our aims as a regulator and as an employer, as well as the industry we regulate.”

Dhlamini acknowledged that TPR understands “there’s still more to do” despite seeing “a reduction in its pay gaps across all categories”.

“We are committed to addressing all pay gaps, particularly our sexual orientation and ethnicity pay gaps, which are too high," she continued.

Reflecting on EDI efforts more broadly, Dhlamini emphasised that the pension industry needs to play its part despite her being “impressed by the appetite and the willingness to drive forward high standards of EDI” in the industry.

“I’m excited that ground-breaking research we carried out last year shows the majority of trustees support our view that diverse and inclusive boards are important for good decision-making, good governance and good member outcomes,” she continued.

“The survey did not focus just on visible or protected characteristics but also tried to gauge the mix of skills, experience and cognitive diversity held on pension scheme boards.

“The data we gathered will provide a valuable baseline we can measure progress against and I’m excited to see how the results will inform the EDI debate.”

Furthermore, Dhlamini argued that “transparency builds trust”, explaining that TPR is “encouraging trustees to consider equality, diversity and inclusion issues” whilst providing “guidance to help governing bodies and employers do this”.

Dhlamini also provided tips for trustees looking to improve their schemes standards.

These included looking at the wider pensions industry and taking advantage of adopting good practices that already exist, engaging with TPR EDI guidance and creating an action plan for their scheme.

“By embedding EDI into scheme governance, I believe it will result in better decisions and this will deliver more value for savers,” she concluded.

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