Recent economic conditions and increasing longevity have put DB schemes under pressure. The Pensions and Lifetime Savings Association is working with the Government and regulators to ensure a sensible regulatory environment for DB schemes that can support them through these tough times - to re-establish a financially stable position, or to manage a smooth buy-out, closure and or, transfer into the PPF.
The Government introduced a new statutory objective for the Pensions Regulator in 2015. Following this, the Regulator has revised their Code of Practice on DB scheme funding. We are working to ensure that the new objective and regulatory approach promote sustainable pension schemes.
The Pensions and Lifetime Savings Association is also re-exploring the case for, and the practical implementation of, wider reform to DB legislation to secure a more stable environment for DB schemes and their sponsoring employers via the work of our DB Taskforce.
We are also pressing for a number of interim solutions that would help take the pressure off schemes funding positions.
It should be easier for schemes to manage the impact of external policy changes, such as the end of contracting out and associated GMP reconciliation.
Pension fund accounting rules should be reformed to take better account of the long-term nature of pension liabilities.
Schemes should be able to adapt their schemes rules to index their benefits to CPI rather than RPI (by means of a statutory override).
If you would like to get in touch regarding our work in this area, please contact Joe.Dabrowski@plsa.co.uk