Pensions - Articles - Statement of strategy consultation published by TPR

 The Pensions Schemes Act 2021 and associated regulations introduce new requirements for trustees of defined benefit (DB) schemes to set a long-term funding and investment strategy for their scheme. From 22 September this year, they will also be required to complete a statement of strategy alongside their actuarial valuation, that sets out this long-term funding strategy and their approach to managing associated risks. This should be a useful tool to support trustees in their long-term planning and risk management, and facilitate engagement between trustees, employers and TPR.

 Following industry engagement from last summer, TPR has created statement of strategy templates to minimise the administrative burden on trustees and is now seeking feedback on its proposals. The consultation builds on TPR’s previous DB funding code consultations and runs for six weeks closing on Tuesday, 16 April.

 TPR’s Interim Director of Regulatory Policy, Analysis and Advice, Lou Davey said: “Receiving statements of strategy will give us additional data to better understand journeys that schemes are on as they mature, improving our regulatory oversight. Our proposals are designed to make it as easy as possible for trustees to comply with new legislation, and ultimately to show how they are acting in the best interest of savers.

 “We want a broad range of views to ensure our proposals are understood and accepted by trustees and advisers.

 “In particular we want to know if people think we are being clear on what data we’re asking trustees to provide, whether this data is readily available, or what challenges there could be in sourcing it.” 

 Statement of Strategy Consultation