The Pension Regulator (TPR) has done too little, too late to reduce the risks to Carillion’s pension schemes. Anne-Marie Winton, partner at ARC Pensions Law, considers what powers TPR needs to be given, such as being able to enforce retrospective fines, to better protect pension schemes in the future
The joint Business and Energy & Industrial Strategy (BEIS) and Work & Pensions Committees’ report on the demise of Carillion has heavily criticized the Pension Regulator (TPR) in no uncertain terms. TPR’s current chief executive, Lesley Titcomb, who has made repeated appearances before the committee, has subsequently confirmed that she will be stepping down at the end of her contract in February 2019. There is unlikely to be a long list of candidates willing to replace her.
Carillion collapsed in January under the weight of a £1.5bn debt pile. It was responsible for 13 defined benefits pension schemes, 11 of which are expected to enter the Pension Protection Fund (PPF), with an aggregate estimated deficit of £800m. Members in those schemes will have their pensions subject to a cap and may have them scaled back.
