The Pensions Regulator (TPR) has pushed back the publication of its new defined benefit funding code until April 2024.
This new code was initially due to be be finalised and implemented in October this year. But there have been calls for many in the industry for TPR to delay implementation to allow schemes and trustees time to prepare for the new regime.
TPR confirmed in its new corporate plan, published today (April 21) that there would now be a six month the delay . It said the new code would strengthen regulation of DB schemes and ensure greater protection of savers’ benefits.
It said: “We are planning to introduce a new funding code in 2024 which will establish a much stronger set of standards for DB schemes.
“A new requirement for trustees to set a long-term funding objective will help ensure that the promises made to savers are kept. The code will make clear that schemes must reduce their reliance on their sponsoring employers as they become increasingly mature and manage risk effectively.”
This delay has been welcomed by many in the pension industry. Broadstone head of policy David Brooks says: “TPR’s Corporate Plan confirms that the new funding code will be pushed back until April 2024. Our own research shows that the vast majority (91 per cent) of trustees expected this news, although questions still remain over the burdensome nature of the code, especially for smaller schemes.
“It is unclear what changes will be made following the latest consultation, which highlighted some issues around the level of regulatory pressure this could place on small schemes and the costs of running their scheme. It will be interesting to see whether the regulations are also pushed back or whether it is only the code that is delayed.”