Last amended by Pension Schemes Act 2021 in 2021. Strengthened TPR's powers, introduced new criminal offences for avoidance of employer debt, and provisions for pensions dashboards.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Pensions Act 2004 established The Pensions Regulator (TPR) and the Pension Protection Fund (PPF). TPR has powers to regulate occupational pension schemes, issue improvement and contribution notices, and take anti-avoidance action. The PPF provides compensation for members of eligible defined benefit schemes where the employer becomes insolvent and the scheme is underfunded.
Key Points
- Establishment of The Pensions Regulator (Part 1)
- Pension Protection Fund for DB scheme members (Part 2)
- Contribution notices and financial support directions (ss.38, 43)
- Scheme funding requirements for DB schemes (Part 3)
- Whistleblowing duties on auditors and actuaries
- Establishes The Pensions Regulator
- Creates the Pension Protection Fund
- Contribution notices and financial support directions
- Moral hazard powers to protect DB schemes
Parts & Sections
Amendments History
2021 — Pension Schemes Act 2021
Strengthened TPR's powers, introduced new criminal offences for avoidance of employer debt, and provisions for pensions dashboards.
2021 — Pension Schemes Act 2021
Enhanced TPR powers including criminal sanctions for conduct risking accrued scheme benefits.
Frequently asked questions
- What is the role of The Pensions Regulator?
- The Pensions Act 2004 established The Pensions Regulator (TPR) as a body corporate. Its objectives include protecting members' benefits. TPR has powers to regulate occupational pension schemes, issue improvement and contribution notices, and take anti-avoidance action to protect scheme members.
- What does the Pension Protection Fund do?
- The Pension Protection Fund (PPF) provides compensation for members of eligible defined benefit schemes. This compensation applies specifically when the employer becomes insolvent and the pension scheme is underfunded, ensuring members receive a portion of their expected benefits.
- What are contribution notices and financial support directions?
- Contribution notices and financial support directions are powers established under the Act. These mechanisms allow The Pensions Regulator to require specific parties to provide financial support to a pension scheme, helping to protect the accrued benefits of scheme members from being eroded by employer insolvency or avoidance actions.
- What duties do auditors and actuaries have under the Act?
- The Act includes specific whistleblowing duties for auditors and actuaries. These professionals are required to report certain concerns or irregularities to The Pensions Regulator, helping to ensure the integrity of pension scheme management and the protection of member benefits.