TPR revisits employer covenant
The Pensions Regulator (TPR) has published additional guidance on monitoring the employer covenant for consultation. TPR’s internal controls have also been revised.
Bill Galvin, acting chief executive, TPR, warns: “Where trustees rely on an employer to underpin the risks of adverse outcomes, they must fully understand the strength of that promise by the employer, including how it will be realised and in what circumstances.” Aidan O’Mahony, Hewitt Associates, adds: “The more detailed guidelines and case studies suggest that TPR is looking to emphasise the importance of risk managment by toughening the standards.”
The consultation period ends on 7 September.