With the Pensions Regulator (TPR) launching a consultation on the principles of a new scheme funding code of practice, we considered what it will mean for UK Defined Benefit (DB) pension schemes and their sponsors.
What is the Scheme Funding Code of Practice?
TPR’s revised code of practice is set to be the third edition of the Regulator’s important guidance in relation to DB scheme funding. This new code will build on TPR’s recent messages about long-term scheme funding and journey planning, and will set out what the Regulator expects from trustees and employers.
How ‘fast track’ funding affects your scheme
The code will also outline TPR’s new ‘fast track’ approach to scheme funding, under which trustees and employers can be confident that funding valuations should not require significant regulatory intervention. Schemes will not be obliged to use the ‘fast track’ option however. If they don’t, they should expect to have to provide further information justifying their 'bespoke approach to the Regulator.
What you will take away from this webinar:
- What a long term funding objective might look like and how this will feed into your triennial valuation
- What the Regulator will expect from you and whether this could lead to increased contribution requirements
- Whether the ‘fast track’ approach is within your grasp - or whether additional regulatory scrutiny is on the cards
- The steps you should take in advance of your next valuation.
Early planning can make all the difference. Jon and Tyron discussed the proposed changes to the regulatory regime, and identified the best ways to prepare.