The Department for Work and Pensions (DWP) has launched a consultation on the draft Occupational Pension Schemes (Amendment and Funding and Investment Strategy) Regulations 2023.
The consultation is also seeking views on plans to amend the Occupational Pension Schemes (Funding Schemes) Regulations 2005 and a new requirement for defined benefit (DB) pension schemes to appoint a chairman when they do not already have one .
The draft regulations detail the new requirements in the Pensions Act 2004, inserted by the Pension Schemes Act 2021, for DB pension schemes to have a funding and investment strategy and file a strategy statement to The Pensions Regulator (TPR).
Commenting on the regulations, Pensions Minister Guy Opperman said: “Most DB schemes are well run. However, despite existing safeguards, best practice is not universal.
“Our intention is to have better and clearer funding standards, while retaining the strengths of a flexible and scheme-specific approach. This is neither ‘one-size-fits-all’ nor micro-managed schemes. Each scheme will be treated on its merits.
“Millions of people depend on defined benefit plans. Our new measures will help ensure they are protected in the long term.”
In addition, TPR chief executive Charles Counsell said: “I welcome the proposed measures which will help trustees focus on long-term planning and risk management, reflecting the best practice that already demonstrate many well-run DB schemes, and enable TPR to regulate PD scheme funding more efficiently and robustly in the future.
“We will now take the draft regulations into account as we shape our new DB Funding Code of Practice, which we hope to consult in the autumn.
“We want schemes to have the continued flexibility of funding to suit their circumstances, while improving journey planning and security for long-term pension savers.”
