TPR’s Draft Funding Code has now been published, together with a consultation on the twin-track regulatory approach. There is lots of detail (with more guidance to come in 2023) on TPR’s expectations of trustees regarding assessment of covenant and how to factor covenant into journey planning. The new regime goes live from October 2023 so it is worth thinking about what it all means for your defined benefit pension schemes.
Whether your scheme is likely to be in Fast track or Bespoke, covenant remains the ultimate underpin for scheme risks and the requirement to assess covenant will be enshrined in legislation.
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The PMI is the largest professional body for pensions professionals in the UK.…