PLSA responds to DB Funding Code revisions

Nigel Peaple, Director of Policy & Advocacy at the Pensions and Lifetime Savings Association, said; "An initial reading of the new regulations suggest that DWP has listened to industry feedback and made some positive revisions to the DB Funding Code regulations which enhance flexibility, especially for open DB schemes. Importantly, it also clarifies that DB schemes can take appropriate levels of investment risk where supportable by the employer covenant.

"Notably, the final set of regulations specifically provide greater flexibility by empowering mature schemes to diversify investments in a wide range of assets without constraints. The clarified stance on sustainable growth aligns with affordability considerations for sponsoring employers.

"A reduction in burdens from streamlined processes for information requests, reducing administrative burdens based on individual scheme circumstances will also aid scheme trustees. These changes signify positive strides toward a more adaptable and efficient regulatory framework."

Cali Sullivan, PR Manager

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