The Pension Regulator 2015 annual Defined Benefit statement on funding

Rethinking your funding solutions - Thursday 2nd July 2015

Last year the Pensions Regulator (tPR) ripped up the rulebook and put in place a new objective and updated its Code of Practice. In the first eagerly awaited Annual Funding Statement since then, tPR explains how it will work in practice going forward, and what is expected of trustees and companies.

Most DB pension schemes are expected to be behind track with their funding plans for valuations in 2015, primarily because of falling interest rates. This can lead to very difficult conversations between sponsors and trustees. In its Annual Funding Statement (issued at the end of May) tPR acknowledged these problems and gave some views on how they could be managed. This included views on the investment return assumption, gilt yield reversion, sustainable employer growth and integrated risk management.

Thank you for showing interest in the above webinar, a recording is accessible here. The webinar was chaired by Kevin Wesbroom and was led by Duncan Lamont from an investment perspective, Jonathan Wicks from a trustee funding perspective and Lynda Whitney from a corporate funding perspective and covered;

• Our views on the impact of market conditions
• Considering what options are available to trustees and companies
• Summarising what others are doing

This recoding will be most relevant for trustees and sponsors of DB pension schemes finalising 2014 returns and those who’ve received 2015 valuations, but will also be of interest to those who want to understand funding issues that may impact them in future years.

Aon Solutions UK Limited is authorised and regulated by the Financial Conduct Authority.