DB scheme funding—the Pensions Regulator's approach

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • DB scheme funding—the Pensions Regulator's approach
  • How does the Pension Regulator communicate its approach to DB scheme funding?
  • The Pensions Regulator's statutory objective in relation to scheme funding
  • Funding principles and themes developed by the Pension Regulator
  • Funding principles
  • Themes developed by the Pensions Regulator
  • Working collaboratively
  • Taking and managing risk
  • Managing risk
  • How to put in place an effective IRM approach
  • More...

DB scheme funding—the Pensions Regulator's approach

CORONAVIRUS (COVID-19) UPDATE: The coronavirus pandemic has had a detrimental impact on the funding levels of a lot of DB schemes and on their employer covenant. The Pensions Regulator (TPR) has issued various guidance documents, including DB scheme funding and investment COVID-19 guidance for trustees and the Annual Funding Statement 2020, to help DB trustees deal with funding issues, including employer covenant changes, employer requests for funding easements (eg to reduce or suspend deficit repair contributions), completing ongoing valuations and changes to recovery plans.

For further information, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees — Funding impact for DB schemes.
FORTHCOMING DEVELOPMENT : TPR is working on the design of a new code of practice for the funding of DB schemes, which will provide clearer funding standards and implement measures introduced in the Pension Schemes Act 2021, including the requirement for a long-term funding strategy.

On 3 March 2020, TPR published its first consultation on the revised DB code of practice, which focuses on the principles behind the new code. TPR proposes a ‘twin-track’ compliance approach to how it oversees the funding arrangements of DB pension funds. Schemes that can provide required information on investments and risks up-front will be put through a ‘Fast Track’ approach to regulatory sign-off of
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