The NAPF says that the success of defined benefit regulation will be dependent on the consistent and accurate implementation by TPR caseworkers in their discussions with schemes and sponsors.
Joanne Segars, the National Association of Pension Funds (NAPF) Chief Executive, said: “The introduction of a new objective for The Pensions Regulator to ‘minimise any adverse impact on the sustainable growth of an employer’ and the recognition of the importance of the employer’s long term support of the schemes is good news, but its success will be dependent on the consistent and accurate implementation by TPR caseworkers in their discussions with schemes and sponsors. It is vital TPR follows through on its undertaking to ensure that scheme risk is managed rather than eliminated. TPR must make sure this intention is clearly understood by trustees, actuaries, consultants and sponsors alike.
“It’s essential that TPR applies a broad interpretation of growth that takes into account scheme specific circumstances, and works closely with trustees to understand what employer growth means to them. It’s important that TPR considers how this could apply across different sectors, including the charitable sector.”
The NAPF believes it is also essential that the essence of TPR’s approach to DB funding is precisely communicated so that trustees are not overloaded with unnecessary information and key messages are not lost. Ms Segars added: “We urge TPR to ensure the documentation is concise and clear. We recommend the documents contain a summary of the key messages and best practice principles. This will help trustees to adopt the essence of the new funding regime and crucial points are not inadvertently overlooked.”
Full press release
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© NAPF - National Association of Pension Funds
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