The UK Government has decided to maintain the independence of the Pensions Regulator, the Pension Protection Fund and the Financial Services Authority despite calls for a cost-saving merger, following a review of the country's oversight of worker retirement schemes.

A potential merger of the different parties was rejected today in favour of the creation of a discussion body to facilitate closer co-operation between the three regulators, after the completion of a review of the UK's pensions regulatory system undertaken by Paul Thornton, former president of the Institute of Actuaries.