Pensions - Articles - New DB funding code comes into force today

 Trustees of DB pension schemes with actuarial valuation dates on or after 22 September 2024 should use the new code.

 TPR’s Executive Director of Market Oversight, Neil Bull said: “I’m delighted that the new DB funding code has come into force. Together with the regulations, it focuses trustees’ minds on the right long-term objective for their scheme and provides clarity of our expectations. It will improve our regulatory grip and should ensure savers get the benefits they expect.”

 Minister for Pensions, Emma Reynolds, said “Defined benefit pensions are a critical part of retirement provision for many. With around nine million people relying on them for their retirement income, it is essential that DB pension schemes are safe for members now and sustainable in the longer-term.

 “With thanks to our industry partners for their support, today’s funding code allows for a stronger set of standards alongside providing that continued flexibility to make sure scheme members get the pension benefits they’ve worked so hard for.”

 The DB regulations, which align with the DB funding code, came into force in April this year and apply to valuations with effective dates on or after 22 September 2024.

 Looking forward
 TPR is inviting scheme staff and trustees to attend a webinar on Tuesday 3 December to learn more about implementing the new DB funding code. Later this year TPR will issue covenant guidance.

 Defined Benefit (DB) Funding Code