News
July 2005
New memorandum of understanding published
A tripartite Memorandum of Understanding has been drawn up between the Department for Work and Pensions (DWP), the Pensions Regulator (PR) and the Pension Protection Fund (PPF).
The Memorandum establishes a framework for co-operation between the DWP, the PR, and the PPF in pension regulation and member protection. It sets out the role of each public body, and explains how they will work together towards the common objective of improving pension security. The division of responsibilities is based on four guiding principles:
- Clear accountability. Each public body must be accountable for its actions, so each must have unambiguous and well-defined responsibilities
- Transparency. Parliament, the pensions community and the public must know who is responsible for what
- No duplication. Each public body must have a clearly defined role, to avoid second guessing, inefficiency and the duplication of effort. This will help ensure proper accountability
- Regular and appropriate information exchange. This will help each public body to discharge its responsibilities as efficiently and effectively as possible
The document also stresses that while the DWP has no responsibilities in the operational activities of the PR and the PPF and shall not be directly involved in them, it has a primary role in the stewardship or sponsorship of the two bodies. It will discharge this responsibility through:
- the scrutiny and approval of annual business plans
- receiving reports on performance and outcome measurement
- receiving financial reports
- exchanging information and analysis of trends and risks
Minister of State for Pensions Reform, Stephen Timms, said:
“The publication of the memorandum reflects the Government’s policy on transparency and the accountability of public bodies. It also allows the public to see that the Pensions Regulator and Pension Protection Fund are working together to achieve both their specific business objectives and their shared strategic objective of improving confidence in pensions.”
The Chair of the Pensions Regulator, David Norgrove, said:
“We have already established close working relationships with both the Pension Protection Fund and the Department. With this memorandum, we now have a sound formal basis for the effective partnership required to achieve our objectives.”
The Chair of the Pension Protection Fund, Lawrence Churchill, added:
“Effective pension protection can best be best delivered through a culture of co-operation within a framework of clear accountability. The Memorandum of Understanding is clear evidence of our practical determination to deliver.”
You can obtain a copy of the Agreement on the Department for Works and Pensions website
More information and copies of the Agreement are also available from the Pensions Regulator website and the Pension Protection Fund website