Hymans Robertson has launched an updated interactive tool and an online hub to help assess TPR’s ‘Fast Track’ route for DB schemes.
The newly revised interactive tool will be used starting on April 1, 2024 for valuations in accordance with the most recent recommendations made by The Pensions Regulator (TPR).
The tool enables DB schemes to assess how their current tactics fare against TPR’s suggested Fast Track tests. The tool offers trustees and sponsors an assessment, revealing if their existing strategy would permit them to pursue the Fast Track approach by taking into account variables including scheme maturity, money, and investment intentions.
The outcomes not only show which components pass or fail the tests, but they also offer an estimate of the expenses involved in fulfilling the Fast Track standards. The tool can also assist in determining the effect of any adjustments to funding or covenants as well as the sensitivity to TPR’s criteria.
Hymans Robertson has also created an online site that acts as a one-stop shop for people looking for information on the DB financing code. In order to help DB schemes navigate the constantly changing regulatory environment, this portal seeks to offer comprehensive guidance and support.
Hymans Robertson partner Laura McLaren says: “Many schemes will be keen to start preparing for next April when TPR’s code comes into force for valuations. Although the changes won’t apply to valuations before then, it makes little sense to agree a funding framework without an eye on how it’s likely to work with the new Code.
“The decision whether to follow the ‘Fast Track’ or ‘Bespoke’ route must be made carefully. Despite Fast Track being the most straightforward compliance option, it could require significantly more pension contributions and may not be right for all schemes. However, those schemes that have seen funding improve over the last 12 months might find that it now looks more achievable. TPR has still to set out in detail how it will regulate Bespoke, but the central concept is that schemes must be able to support risks to funding.
“The pensions landscape has changed a lot in the last year. Our resources published today will help schemes to make sense of the new funding code, taking into account their own circumstances and these many changes. They will help schemes to understand what the proposals mean for them. Understanding what the latest proposals mean for them will guide decisions today.”