New code of practice on funding defined benefits
The Pensions Regulator has published a new code of practice on funding defined benefits to take account of its new statutory objective ’to minimise any adverse impact on the sustainable growth of an employer’, which following parliamentary approval will replace the existing code in the coming months. Although not currently in force, the regulator encourages all trustee boards to take the new code into account as far as reasonable in any ongoing valuation process.
Subject to some differences, the main messages follow those set out in the regulator’s consultation document, which was published last December.
In particular, the code: recognises that a strong, ongoing employer alongside an appropriate funding plan is the best support for a well-governed scheme; recognises that trustees need to comply with their fiduciary duties and ensure that scheme benefits can be paid as they fall due, while employers need to run their businesses, grow them as appropriate and ensure that they are able to provide the pensions they have promised; provides that trustees should adopt an integrated approach to risk management across the key risk areas to funding, namely employer covenant, investment and funding-related risks; and has nine principles underpinning it, which include working collaboratively, managing risk, seeking balance with the sustainable growth of the employer and taking a proportionate approach according to the scheme’s size, complexity and risk…
Click on the link below to read the rest of the Eversheds briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Eversheds
News from The Lawyer
Briefings from Eversheds
Eversheds’ pensions freedoms survey: 81 per cent of employers concerned their staff will make poor financial decisions
Eighty-one per cent of employers are concerned that their staff will make poor financial decisions when they are given new pensions freedoms in April 2015.
ESMA is inviting all interested stakeholders to respond to the consultation paper.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions