Lock ‘em up? The Pensions Regulator’s new criminal powers
From 1 October 2021, The Pensions Regulator (TPR) will have new criminal powers to bolster its anti-avoidance arsenal, but what does it really mean for those involved with the running of pension schemes?
The new powers allow TPR to investigate and prosecute any person who avoids an employer debt, anyone who does (or doesn’t do) something which would prevent pension scheme members from receiving their benefits in full, and anyone who does not comply with a contribution notice issued under Section 38 of the Pensions Act 2004.
Anyone prosecuted by TPR for these offences faces up to seven years in prison and a potentially unlimited fine. Either consequence is likely to be a worrying one for those potentially within scope of the new powers, and many are speculating that we might see an exodus of non-professional trustees who do not want to open themselves up to the risk of imprisonment for a task they often volunteer to do