Pension funds welcome Regulator's signal on funding flexibility | Pensions and Lifetime Savings Association

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Pension funds welcome Regulator's signal on funding flexibility

08 May 2013

The National Association of Pension Funds (NAPF) today commented on the Pensions Regulator’s annual funding statement, which sets out guidance on the funding of defined benefit pension schemes.

Joanne Segars, Chief Executive, NAPF, said:

“The Regulator has put more emphasis on the flexibilities open to pension schemes grappling with the very low gilt yields resulting from the weak economy and quantitative easing, and that is a helpful step.

“The statement has shifted away from last year’s heavy bias on basing investment return assumptions on risk-free assets and gilts, and instead recognises that pension funds are confronting some major challenges, and that a broader view is needed.

“Many businesses going through their valuations in 2013 are facing much tougher conditions than they did three years ago, so they will be encouraged by this sign of support. However, it is one thing to talk about flexibility and another to allow it to be used. The Regulator must stand by its signals.

“We are encouraged by this latest statement and the signs so far of a change in the Regulator’s approach.”

 

Notes to editors:

1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.

Contacts:

Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]