The Pensions Regulator (TPR) has today published its annual funding statement (AFS), aimed at all trustees and employers of defined benefit (DB) schemes.
The AFS is primarily aimed at schemes undertaking valuations with effective dates in the period 22 September 2016 to 21 September 2017 (2017 valuations), but is relevant to all trustees and sponsoring employers of DB schemes.
The AFS highlights some of the key issues facing schemes with 2017 valuations. Schemes will have been affected differently by market conditions and TPR’s analysis identifies groups of schemes which have been impacted in particular ways.
Schemes should read the statement alongside TPR’s code of practice on scheme funding and supporting guidance on integrated risk management, DB investment, and assessing and monitoring the employer covenant. TPR expects schemes with 2017 valuations to fully incorporate the principles contained in its DB code into their valuations.
TPR 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).
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