All defined benefit schemes in deficit currently have a deadline for submitting a funding proposal that falls between 30 November 2010 and 31 May 2011. As a result of the Government announcement regarding the new defined benefit model, the Pensions Board deferred this deadline for all schemes. Currently, the Board is not in a position to announce a revised deadline and any new date will have to take account of the legislative changes intended by the Government. The new deadline must also allow schemes time to prepare new submissions in the light of any changes.
The indefinite extension of the November deadline could prove problematic for scheme trustees where the preparation of a funding proposal has already been deferred a number of times. The uncertainty created by the announcement will also undoubtedly impact the negotiation of funding plans and could leave the trustees of many schemes in a difficult position. Therefore, it is important the proposed measures are implemented as soon as possible.