In recent years, The Pensions Regulator (“TPR”) has been steadfast in enforcing compliance among pension scheme trustees and employers, often issuing penalties for non-compliance. However, recent cases indicate that with a valid reason, it is possible to contest and even overturn penalties. Here, we examine three noteworthy tribunal decisions that shed light on the courts’ willingness to scrutinise TPR’s rigid application of penalties and underscores the importance of fairness and proportionality in regulatory enforcement.
Caldwell v TPR: Flexibility in Exceptional Circumstances
Background
In Caldwell (Trustee of the Smith & Wallace & Co 1988 Pension Plan) v The Pensions Regulator [2024], TPR issued a penalty to Caldwell for failing to prepare a chair’s statement by the required deadline (within seven months of the end of each scheme year). This annual governance statement is mandatory for defined contribution pension schemes, and failure to submit it incurs an automatic fine between £500 and £2,000.