TPR has issued a statement to trustees of occupational pension schemes setting out its general position in relation to current financial pressures. TPR also suggests that, in respect of contract-based defined contribution (money purchase) schemes which have no trustees, employers may wish to encourage employees to discuss these issues with the relevant scheme provider.
The statement highlights that:
- recent developments in the financial markets will be of great concern to pension scheme trustees, sponsoring employers and scheme members;
- trustees need to remain vigilant and to keep the position of their schemes under review;
- TPR’s current codes and guidance cover the relevant issues and allow sufficient flexibility for trustees; and
- trustees should continue to focus on making sound decisions in the long term interests of scheme members.
TPR refers trustees to its existing guidance and Codes of Practice. It also emphasises that, in the current climate in which schemes are likely to be affected by falls in scheme asset values and greater pressure on employer covenants, the scheme funding and recovery plan provisions apply as previously.
View the Statement (333KB(pdf)