NAPF comments on the Pensions Regulator’s annual funding statement

The National Association of Pension Funds (NAPF) today (Friday) commented on the annual funding statement issued by the Pensions Regulator (TPR) on 22 May 2015.

Helen Forrest, DB Policy Lead, NAPF, said:

“The latest Annual Funding Statement from the Pensions Regulator is very welcome and provides an important reminder of some of the key messages from their defined benefit funding code, published last year.

“This year’s concise funding statement reiterates the need for scheme trustees to manage, rather than eliminate, risk and to maintain a clear view of the sustainability of the growth of a sponsoring employer in order to secure the long-term health of the scheme. We welcome TPR’s commitment to issuing further guidance on integrated risk management and employer covenant assessment. These will provide further practical guidance for trustees, in particular those with not-for-profit employers and multi-employer schemes.

“The statement also provides a useful commentary on the prevailing economic environment and the impact of this on schemes’ funding in general. It recognises, in particular, the detrimental effect of long-term low interest rates on scheme deficits. These conditions increase the appetite of funds for assets that match their long-term, inflation-linked liabilities and we believe it is critical the Government supports pension funds by ensuring a suitable supply of such assets, including the provision of a pipeline of infrastructure projects with a risk-profile that makes them an attractive investment opportunity for pension funds.”

 

Notes to editors:

The NAPF is the voice of workplace pensions in the UK. We speak for over 1,300 pension schemes that provide pensions for over 17 million people and have more than £900 billion of assets. We also have 400 members from businesses supporting the pensions sector.

We aim to help everyone get more out of their retirement savings. To do this we spread best practice among our members, challenge regulation where it adds more cost than benefit and promote policies that add value for savers.

Contacts:

Lucy Grubb, Head of Media and PR, NAPF, 020 7601 1726 or 07713 073023, [email protected]

Eleanor Bennett, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]