The Pensions Regulator has published its latest
Annual Funding Statement. Most of the messages are
consistent with those contained in last year's statement but,
as you might expect, this year's statement emphasises the
need for trustees to assess the impact on their scheme and sponsor
covenant of high inflation, the prospect of higher interest rates
and the impact of the war in Ukraine and related sanctions. The
guidance also reflects the fact that the average recovery plan
length for defined benefit (DB) schemes has fallen
to less than six years.
Looking ahead, the Regulator confirms that we can expect the
second consultation on the new DB Funding Code to take place later
this year, after the DWP has consulted on regulations that will
underpin the new funding requirements contained in the Pension
Scheme Act 2021.
