DB FUNDING CODE OF PRACTICE (2020) – PLSA CONSULTATION RESPONSE
From March to September 2020, The Pensions Regulator consulted on its regulatory approach to, principles for and practical application of a revised DB funding code of practice. The PLSA supports the principles of the code and believes its overall aims and objectives to be practical. The goal of the overall system should be to ensure that as many savers get their full benefits as possible, which is what the proposals attempt to achieve.
The overarching proposal for a twin-track approach should help smaller schemes achieve compliance as efficiently as possible. However, the question of how the code can be adequately applied in Fast Track – a collection of consistent benchmarks to be applied across DB schemes of all sizes, maturities and covenant strengths – is complex and requires further consideration.