On Jul. 29, UK TPR said DB funding code had been laid in parliament.
UK TPR said new defined benefit (DB) pensions funding code was laid in Parliament, with UK GVT issuing an explanatory memorandum advising on trustee compliance.
UK TPR also issued response to consultations on new DB funding code and response on regulatory approach, including Fast Track and Bespoke valuation submissions.
The new code of practice aims to complement regulatory changes, and includes a framework for protecting savers while also offering flexibility to the market.
It sets out to trustees, sponsoring employers and advisers TPR’s guidance and expectations on how to comply with funding and investment strategy requirements.
The new code: encourages good long-term planning and risk management behaviours.
Includes guidance on how to set funding plans in line with support their sponsors can provide and how maturing scheme can move to a point of low dependency on sponsor.
Gives guidance on setting recovery plans in line with what is reasonably affordable.
Effectiveness
The defined benefit funding code of practice 2024 will replace the existing DB funding code, introduced in 2014, for valuations with effective dates on or after Sep. 22, 2024.
TPR recognises there will be a gap between when requirements of the Funding and Investment Strategy Regulations start applying and new DB funding code is in force.
Schemes with valuation dates in this period can use new DB funding code as base.
Will communicate with affected schemes and take a reasonable regulatory approach.
