TPR’s final draft funding code released ahead of new regime coming into effect
TPR’s final draft funding code released ahead of new regime coming into effect
06 Aug 2024
What you need to know
- The Pensions Regulator’s (TPR’s) final draft defined benefit funding code of practice (the code) was laid before Parliament on 29 July 2024. The code is TPR’s interpretation of how trustees can comply with the legislative requirements set out in the funding and investment strategy (FIS) regulations that will apply to all valuations with effective dates on or after 22 September 2024.
- Although the code itself is not legally binding, the FIS regulations delegate certain matters to TPR such as the duration used to define significant maturity. Codes of practice are taken into account when determining whether legal requirements have been met, including by TPR when considering how to use its powers for non-compliance.
- TPR has also responded to its Fast Track consultation and released the parameters which will apply from September.
- In due course, we expect TPR to publish its response to the consultation on the form and content of the statement of strategy, more information on its twin track regulatory approach and a consultation on updated covenant guidance. In addition, further guidance may follow as TPR reviews its existing DB funding and investment-related guidance.