Terms of Reference
Purpose
- To review how the functions of the organisations set up by the 2004 Pensions Act - The Pensions Regulator and the Pension Protection Fund - fit with the Government's existing pensions policies, its pension reform proposals, and wider developments in the pensions market.
- To consider also how other organisations with responsibilities for the regulation and protection of workplace pensions interact with them on work based pensions issues.
- To make recommendations about the most appropriate future configuration of organisational responsibilities, providing robust governance and the most effective, efficient and affordable arrangement of functions, avoiding duplication and conflicts of interest, in order to deliver Government policy.
Methodology
- To examine how the functions of the organisations established through the Pensions Act 2004 - the Pension Protection Fund (PPF) and the Pensions Regulator - fit with the Government's pension reform proposals.
- To examine how the functions of further bodies also fit with the reform proposals. This extends to those involved in
- Regulation of work-based pensions, particularly the Financial Services Authority;
- Provision of advice, mediation, dispute resolution or compensation for pensions, in particular the Pensions Advisory Service, Pensions Ombudsman, the PPF Ombudsman, Financial Ombudsman Service (in a pensions role), Pensions Regulator Tribunal, and the Financial Services Compensation Scheme (in a pensions role).
- To consider any implications for the coherence of the regulatory structure applied across the pensions market, taking account of the Hampton principles.
- To take account of possible future regulatory developments, including those from Europe and beyond.
- The review will not need to examine the administration arrangements for the Financial Assistance Scheme, as these have been separately examined, with decisions announced in July 2006.
- To encourage debate and aim to build consensus, consulting on emerging proposals for any changes in the way the functions are best configured between organisations.