Wedlake Bell Pensions & Employee Benefits Team Update – TPR’s Annual Funding Statement 2020
On 30th April 2020 the Pensions Regulator (“TPR”) published the above Statement aimed at employers and trustees of defined benefit schemes.
It is an important general guide and employers and trustees should read the full statement here.
TPR recognises that certain actions will be necessary in light of Covid19 but urges parties to focus on the long term picture.
Not unexpectedly the Statement does not do employers’ and trustees’ jobs for them as circumstances will differ. Employers and trustees should obtain legal and other relevant advice to help ensure decisions stand up to any potential challenges and are aligned with their respective duties. Good answers should then be available if and when TPR and/or members come knocking on the door.
Some key interlinked areas covered by the Statement are:
•Reducing deficit contributions
•Assessing the employer covenant
•Approach to valuations in progress
•Reaffirming and building on TPR’s 27/3/20 guidance to trustees on “DB scheme funding and investment”
•Employers and Trustees reaching consensus and the need for professional advice
•Table of potential actions depending on employer covenant strength
Please do not hesitate to contact us to discuss any points arising on TPR’s Statement or generally.