After the Carillion and BHS debacles, the Pensions Regulator (tPR) announced it was going to be “clearer, quicker and tougher”. The new Pension Schemes Act 2021 (the Act), which received Royal Assent on 11 February 2021, gives tPR significant new powers so it can beef up its approach. Most provisions are not yet in force and we expect further consultation on draft regulations and guidance before tPR’s new powers have effect.

Corporate groups with defined benefit pension (DB) schemes should understand the Act’s new requirements because failure to comply could result in large fines or being charged with a criminal offence.