Source · Select Committees · Work and Pensions Committee
Recommendation 12
12
Accepted
Paragraph: 124
Report back on LDI resilience monitoring plans and TPR's digital transformation timeline.
Recommendation
TPR is working to become a more digitally enabled and data-led organisation but has a long way to go to achieve this. We support the Financial Policy Committee’s recommendation that TPR should specify minimum levels of resilience for the LDI arrangements in which pension schemes may invest and work with other regulators to ensure these are maintained. TPR does not have the data to check whether its guidance is being followed. DWP and TPR should report back to us by the end of October 2023 on how they plan to monitor whether LDI resilience is being maintained. They should also set out a timeline for TPR’s commitment to become a more digitally enabled and data-led organisation, with plans to resource it.
Government Response Summary
The government states TPR will use various data sources to monitor LDI resilience and will set out a data and digital strategy by the end of the financial year, building on recent developments like establishing the DDaT Directorate and new recruitments.
Paragraph Reference:
124
Government Response
Accepted
HM Government
Accepted
As set out in the response to recommendation 2 TPR will use a range of sources to monitor whether LDI resilience is being maintained – data on buffers collected by the FCA from LDI managers, data from trustees on liquidity levels, and data from trustees and investment consultants on governance mechanisms. TPR is committed to becoming data-led and digitally enabled, so it can better spot and assess risk, identify and prevent harm, and provide even greater value for money to savers and pension schemes. As set out in their Corporate Plan 2023 to 2024,6 a priority for TPR this year is the development and embedding of their Data, Digital and Technology Directorate (DDaT). TPR is rapidly building their capability in this space, including through the recent recruitment of a new Director of Digital Services and a new Director of Data Services, who bring with them significant experience from both the public and private sector. In May, TPR’s Board approved the business case for the development of a number of new digital services for pension schemes, which will be delivered over the next three years. TPR will set out their vision in a data and digital strategy by the end of the financial year. Key objectives for this strategy will include ensuring that they have timely and relevant data, and the automation of processes to drive greater efficiency and consistency.