The overall funding position of private sector defined benefit (DB) schemes has improved significantly in recent years. With these improvements in scheme’s funding positions set to continue, the number of DB schemes in surplus is expected to rise in the coming years, allowing schemes greater opportunity to enter an ‘endgame’ scenario, whether that be through an insurance solution (buy-in/buy-out), investment or administration mergers or consolidations.
The PLSA is committed to working with the Government and regulators to ensure a sensible regulatory environment for DB schemes that can help ensure the sustainability of open DB schemes and help closed DB schemes run off more efficiently and ultimately secure member benefits.
We continue to represent the pensions industry regarding the Pensions Regulator's proposals for a reform of the funding regime for DB pensions, seeking to ensure the DB Funding Code adopts a flexible approach to DB schemes that are open to new accrual.
If you would like to get in touch regarding our work in this area, please contact [email protected]