The regulator is concerned about low standards on record keeping, communication and a lack of focus around decumulation.

The enforcement follows research which found more than half of defined contribution schemes had not achieved the voluntary guidance, which the regulator has published over the last five years.

Speaking at a seminar of leading pension figures held by the Pensions Advisory Service, Bill Galvin, executive director of the pensions regulator, blamed the poor standards on the focus on final salary schemes.

“Trustees spend the vast majority of their time on final salary schemes. They need to have a framework for DC to make sure core processes are carried out.”

Andy Cheseldine, senior consultant and DC specialist at Hewitt was in favour of the move, but sympathized with schemes that had failed to meet the regulator’s standards.

“It is entirely understandable if you have a £100m debt hanging over the head of the company, which can close down the scheme, put it in the PPF and put you out of a job, you are going to focus on that rather than the perceived relative simplicity of DC where there is not a big debt,” he said. “It is question of how you can make sure it is better without being disproportionate in terms of time and effort.”

Support from the move also came from Simon Baynes, chair of trustees for the long running Logica pension plan and now trustee with Capital Cranfied Trustees.

“The idea of formal recovery plans for schemes identified as following poor practice sounds like an excellent idea,” he said.  “I trust that the recovery plans will be pragmatic and will be designed to assist the schemes involved. The last thing poor practice schemes need is bureaucracy.  Appointing an independent trustee is a good first step to turning around poor practice.”

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