ECPA responds to TPR’s consultation on prosecution of criminal sanctions

Article summary

The Employer Covenant Practitioners Association (ECPA) has responded to the Pension Regulator’s (TPR) consultation on its draft policy on how it will use its new criminal powers under the Pension Schemes Act 2021 to investigate and prosecute those who avoid employer debts to defined benefit (DB)  pension schemes or put savers’ pensions at risk. The ECPA is supportive of legislation designed to combat ‘the most serious intentional or reckless conduct that endangers pension schemes and members’ savings’. However, it has also expressed concerns regarding TPR’s draft policy in relation to the uncertainty surrounding these sanctions, and whether they could ‘dissuade parties from investing in, or interacting with, sponsors of DB schemes’. The ECPA believes that this would be detrimental to employers, their strength of covenant and ultimately the security of members’ benefits. TPR’s consultation closes on 22 April 2021.