NAO to scrutinise Pensions Regulator

The National Audit Office (NAO) is conducting a study of how the Pensions Regulator (TPR) protects defined contribution (DC) pension scheme members.

The report, which will be published in spring 2012, will focus on whether the regulation of TPR effectively addresses the key risks to scheme members.

It will take into account the overlapping responsibilities for contract-based schemes which fall under the remit of the Financial Services Authority( FSA).

This report is a follow-up to the NAO's 2007 initial study of TPR's regulatory approach, which found the body had made "good progress" in establishing a risk-based approach to regulation since it replaced Occupational Pensions Regulatory Authority (OPRA) in 2005.

"Defined contribution pension schemes are rapidly gaining in importance for the provision of retirement income to workers in the private sector," the NAO said in a statement.

"Any failure to provide effective protection for the benefits of members of these schemes creates risks for individual members, and increases future financial liabilities for the taxpayer if this contributes to people having insufficient funds to finance their retirement."

The news comes after TPR director of seven years June Mulroy, pictured, announced she will step down in the coming weeks.