Draft defined benefit (DB) funding code of practice and regulatory approach consultation
Response date: 29 July 2024
Closing date: 24 March 2023
Consultation on our draft defined benefit (DB) funding code of practice and our regulatory approach to assessing valuations.
Response
Final
Final DB funding code of practice
Final Fast Track submission tests and conditions guidance
Final Fast Track submission tests and conditions summary of changes
Summary
In this 14-week consultation, we are seeking views on a draft DB funding code of practice, which provides practical guidance on how trustees can comply with scheme funding requirements. We are also consulting on Fast Track and our regulatory approach.
Introduction
This is our second of two consultations on the draft DB funding code.
Published in March 2020, our first consultation set out our proposals for a clearer, more enforceable funding framework. We welcomed comments on:
- our proposed regulatory approach
- the key principles that should underpin all valuations
- options for how these principles could be applied in practice through more detailed guidelines
Our approach to the consultation
We are now seeking views on the draft DB funding code of practice itself and our regulatory approach to assessing valuations.
We have developed our approach to reflect the direction of legislation (as consulted on by the Department for Work and Pensions from July to October 2022), responses to our first consultation and our additional analysis.
Consultation documents
This consultation package includes the following:
- The draft DB Funding Code of Practice – setting out our expectations of how trustees can comply with scheme requirements.
- The DB Funding Code consultation document – explaining our approach, including relevant considerations and obligations.
- Fast Track and our regulatory approach consultation document – explaining our twin track regulatory approach to assessing valuations and the proposed design of Fast Track.
- The response to our first consultation (National Archives).
In our introduction to the draft code, we give an overview of the draft funding requirements and explain how we have structured the draft code to reflect this.
Watch our draft DB funding code and Fast Track webinar
Hear from David Fairs, TPR’s Executive Director of Regulatory Policy, Analysis and Advice, and key members of the DB funding code team, who take you through the key elements of the draft code and our proposed twin-track approach to assessing valuations.
- Modelling The Universe Of Defined Benefit Pension Schemes
PDF 1921KB, 63 page(s) - This report documents the modelling undertaken by the Government Actuary’s Department in relation to The Pensions Regulator’s proposed funding code for Defined Benefit pension schemes.