Regulator unveils long-awaited DB code of practice

The Pensions Regulator has today released a defined benefit code of practice that emphasises the importance of trustees and employers working together as a big happy family.

The regulator said the code urges trustees and employers to consider the impact scheme funding proposals may have on the employer’s plans for sustainable business growth.

In a statement, Stephen Soper, interim chief executive at the regulator, said: “In the vast majority of circumstances, trustees and employers should be able to agree funding plans that both benefit the business and strengthen the scheme’s long-term security – but this can only be achieved by employers and trustees working openly and collaboratively.”

Trustees will now be expected to take an integrated approach to risk management. “Trustees should take into account their views on market conditions and the outlook for future asset returns and the associated uncertainty of those returns and what this means for their scheme and employer(s),” the code stated.

This is expected to be in place by their 2014 valuations.

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