New DB funding code - Action plans for trustees and sponsors
Pensions & benefits Policy & regulation DB funding code
The Pensions Regulator’s new DB funding code has (finally!) been laid before Parliament and we now know the vast majority of the details of the new funding regime, which is set to be the biggest shake up in DB pension scheme valuation discussions for almost 20 years.
Following improved funding levels over recent years, the impact of the new regime for many schemes will be less significant than anticipated when the code was first drafted. However, there are still actions that all schemes can, and should, be getting on with, especially those with valuation dates later in 2024.
Our action lists will help trustees and sponsors to prepare for the new funding, covenant and investment regime with summaries of the highlights, example valuations under the new funding regime, and key actions.
Under the new funding regime, the Pensions Regulator (TPR) will assess valuations under one of two routes: Fast Track or Bespoke. Fast Track is a regulatory filter, under which if you pass various tests you can expect limited scrutiny. Bespoke is an equally valid route but you must justify your approach.
You will also find a summary of the requirements that schemes must meet in order to qualify for the Fast Track route.
The new funding code – the final details and what it means for you
Join our team of experts to understand TPR’s new code from both trustee and sponsor perspectives, covering funding, covenant and investment aspects.
