The Pensions Regulator consults on new funding code

Employment, Pensions and Immigration | 10/01/2023

Back in our July briefing we discussed how the Pension Schemes Act 2021 provided for a framework for a new defined benefit funding regime. In particular, the framework would require defined benefit schemes to have a funding and investment strategy for the purpose of ensuring benefits under the scheme can be paid over the long term.

As part of this, trustees will be required to produce:

A funding and investment strategy; and
A statement of strategy.

Draft regulations added further detail but the industry has been waiting for a revised code of practice from the Pension Regulator (Regulator) to understand what much of this will mean in practice.

The Regulator has now provided a draft of this new code, on which they are consulting (Draft Code). The consultation period will close on 24 March 2023. The intention is that the Draft Code will come into force from October 2023.

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