Investigations into the availability of TPR’s moral hazard powers
The Pensions Regulator has wide-ranging powers to prevent employers from avoiding their funding obligations, called moral hazard (or anti-avoidance) powers. In particular, Contribution Notices allow TPR to require companies and directors to pay monetary amounts to pension schemes, and Financial Support Directions allow TPR to require appropriate financial support is put in place for a pension scheme. Further The Pension Schemes Act 2021 introduced criminal sanctions for individuals involved in activity that weakens a pension scheme’s security.
We have a detailed understanding of the eligibility criteria for TPR’s moral hazard powers. We can prepare eligibility assessments to assist trustees in seeking the Regulator’s help to remedy unmitigated detriment caused by corporate events or under-resourced schemes.