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TPR reassurances
around trustee position during Covid-19 welcome – Steven Taylor, LCP

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Executive Director of Regulatory Policy, Analysis and Advice at The Pensions Regulator (TPR), David Fairs, has updated the industry on TPR's latest thinking in the midst of the current Covid-19 situation.  Key points which emerged from David Fairs responses to Steven Taylor, partner at LCP were: 

New reassurances for trustees

David Fairs recognised that trustees may have to make 'difficult decisions' with 'incomplete information' in the current climate but said that provided trustees did the 'best that they can' following TPR’s guidance, with proper documentation of their processes, then TPR would respect their decisions and would not be looking to retrospectively challenge them, except in the case of criminal behaviour;

Update expected on approach to scheme valuation dates 

David Fairs acknowledged the challenges for schemes with valuation dates at end March 2020 and in the coming months and said that TPR’s annual funding statement, which will be published after Easter, would provide further guidance for schemes on how to approach this issue, especially once market conditions had become clearer;  he said that for valuations that were close to completion they would not ask trustees to review the key assumptions but that they should consider the impact of the current pandemic on the strength of the employer covenant before completing the valuation;

Varied industry experience on transfers 

David Fairs said that schemes were reporting a range of experiences regarding transfers, with some schemes having low levels of interest in transferring but others having a high level of requests for quotes.  He stressed the importance of protecting members against scams where there was increased activity.

Latest thinking on the DB funding code 

David Fairs indicated that TPR was considering an extension to the consultation period on the proposed DB funding code, but felt that the core concepts about integrated risk management and long-term goals were still very relevant, and in particular schemes that had already embraced these principles were likely to be among the best placed to weather current financial conditions. 
  
Commenting, Steven Taylor, Partner at LCP said: "We welcome the further clarity which TPR have provided in light of the current situation, especially as regards the difficult position of trustees and what is expected of them.  With regard to the DB funding code, we are sure that many would welcome extra time to respond to this important and detailed document and to consider whether aspects of it remain appropriate in the light of recent shock events".

You can watch the video here 

DB funding and investment in challenging times - how schemes can weather the storm

DB funding and investment in challenging times - how schemes can weather the storm

On-demand webinar

We look at why integrated risk management, contingency planning, covenant, funding and investment assessments are so important for schemes in a post Covid-19 landscape.

Watch on-demand