The Pensions Regulator produces an Annual Funding Statement and guidance for trustees and employers
01 May 2020
The Pensions Regulator (TPR) has published a new Annual Funding Statement (AFS) and guidance, designed to assist employers and trustees through the current challenging times that everyone is facing due to COVID-19.
The AFS guides trustees and employers through how to approach valuations and scheme funding over the next year. March and April 2020 will have been particularly challenging, but the overarching message is that everyone needs to work together in order to protect the retirements of savers.
TPR’s AFS is for trustees and sponsoring employers of occupational Defined Benefit (DB) pension schemes and is particularly relevant to schemes with valuation dates between 22 September 2019 and 21 September 2020. It also applies to schemes which need to evaluate their funding and risk strategies, as a result of significant ongoing changes. Focused guidance is provided on how to approach the valuation given current circumstances, and what TPR expects from both trustees and employers, but equally, what they can expect in return.
The TPR makes clear that it understands that we are currently living in unprecedented times but reminds trustees and employers that they should continue to keep focus on the long term – particularly in terms of planning and risk management. The TPR’s aim is to support businesses and trustees to ensure that those individuals who are saving are protected.
The statement gives an update on some timely issues, such as COVID-19, and also on regulatory developments which will affect pension scheme management, both now and in the future.
Due to the current economic climate, and the uncertainty surrounding it, TPR may publish further guidance in the autumn.
Read the Annual Funding Statement in its entirety here.
The information in this article is accurate at the time of publication. For all the latest information, news and resources on how the COVID-19 pandemic is affecting payroll professions, visit our Coronavirus hub.