Scheme funding – are you up to date with the latest from TPR on this?
Published on 16th Jun 2015
Pensions Regulator issues annual DB funding statement for 2015
The Pensions Regulator (TPR) has issued its annual defined benefit funding statement for 2015. This sets out its analysis of current market conditions, and its guidance on how employers and trustees can agree funding plans which protect members’ benefits without undermining the sustainable growth of the employer.
TPR’s new objective to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of its scheme funding functions), which was introduced in July 2014, comes through clearly in the statement. TPR acknowledges that low interest rates and falling gilt yields have led to a very challenging environment for schemes with 2015 valuation dates. It nevertheless considers that provided trustees take an integrated and proportionate approach to managing risks, they will be able to improve the scheme situation over the longer term. TPR believes that this can take place without the support needed for the scheme being a barrier to the employer investing in the business.
TPR is planning to publish, in the coming months, practical guidance on assessing the sponsoring employer’s ability to support the scheme, an integrated approach to managing risk, and setting an investment strategy.
