Of interest to all schemes providing defined benefits, including those affected by the new definition of money purchase benefits (see above) is TPR’s revised DB funding Code of Practice. The Code was brought into force, slightly later than first anticipated, on 29 July 2014.
As a reminder, the revised Code reflects TPR’s new statutory objective in relation to its scheme-specific funding functions to “minimise any adverse impact on the sustainable growth of an employer”. In addition, the emphasis on eliminating a scheme’s funding deficit has shifted from eliminating any shortfall “as quickly as the employer can reasonably afford” to achieving this over “an appropriate period” specified in the recovery plan.
Our August 2014 briefing will review the new Code in detail.
View the Code.