The Pensions Regulator’s Annual Funding Statement

On 27th April 2012 the Pensions Regulator published its first annual funding statement which provides advice on how pension scheme funding valuations should be dealt with in the current economic climate. The statement is aimed at trustees and companies with defined benefit pension schemes which have triennial scheme valuation dates between September 2011 and September 2012.

The overall message is "business as usual" and is in line with previous statements made by the Regulator regarding the difficult economic climate. Although the Regulator recognises that the current economic conditions will put pressure on defined benefit pension scheme funding, it believes that there is sufficient flexibility within the funding framework so that, in practice, most schemes and sponsoring companies should be able to meet their pension promises to members without significant adjustments to their current deficit recovery plans.