Pensions - Articles - BW comments on tPR guide for employers on DB funding code

 “The publication of this guide shows that the Pensions Regulator is keen to encourage employers to get involved in pension scheme funding. In many cases Employers’ will have had a reactive role in negotiating contributions, or discussing covenant, every three years. We would encourage employers to be proactive and work with trustees at every step. Employers need to have an in depth understanding of the risks they face in sponsoring a defined benefit pension scheme, and collaborating with trustees to manage these risks can have big pay-offs for the employer’s own business risk management.

 “A strong employer is the best backing for a scheme. We are happy to see the Regulator’s continued focus on recognition of the employer’s need to invest in its business, driven in some small part by the Regulator’s own objectives. Still, employers will need to prepare for a greater degree of scrutiny of their business plans as trustees get to grips with the revised Code of Practice.”