The Pensions Regulator publishes guide for employers on DB funding code
Tuesday 7 July 2015
As part of an ongoing communications campaign The Pensions Regulator today published a new guide to help employers understand how the code of practice on funding defined benefits (DB) applies to them.
The quick guide explains how employers should work with trustees in an open and transparent way to reach feasible scheme funding solutions.
Go to funding your DB scheme to view the guide and a short video that discusses its main messages and how it can support employers.
The code balances trustees’ duties to pay benefits when due with employers’ objectives to grow their business whilst ensuring pension promises are kept.
Executive director for DB pension schemes Stephen Soper said: “Employers carry a huge responsibility to pay promised benefits to members when they have a defined pension scheme to support.
“The DB funding code recognises that the best way to fulfil this responsibility is to encourage employers to invest wisely in their business and thrive, whilst working with trustees to balance this growth against the needs of the scheme.
“The new quick guide emphasises the benefits of trustees and employers working collaboratively together in an open and transparent way, understanding the long-term plans for the business and the pension scheme and managing the associated risks accordingly.”
The guide also highlights the need for trustees to manage risk when setting investment and funding strategies which reflect both the employers’ appetite for risk and ability to fund the scheme now and in the future.
The Pensions Regulator is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only).
Matt Adams 01273 662086
David Morley 01273 662091
Out of hours 01273 648496