The Pensions Regulator has lowered the amount of leverage that it deems acceptable for schemes to have to meet the requirements for a ‘fast-track’ valuation, as part of its new defined benefit funding code.

On the go: Construction products manufacturer Dixon International Group has told the Work and Pensions Committee that actuarial pressures in relation to its defined benefit scheme “almost put us out of business and several times pushed us into loss”.

The Pensions Regulator has warned of the challenges posed by attempting to value illiquid assets, as the government seeks to incentivise defined contribution to increase these investments.

The government will lay regulations to remove fees from the defined contribution charge cap early next year, one of a number of pensions-related proposals included in the reforms aimed at improving the competitiveness of the UK’s financial services sector.

The Financial Conduct Authority has called on asset managers to stress-test the “operational consequences” of improved liquidity buffers for liability-driven investment funds, recognising the additional costs that these buffers impose on pension schemes.

Fifty per cent of defined benefit schemes are now closed to future accrual, according to new figures from the Pensions Regulator.

ESG spotlight: A roundup of the latest news on environmental, social and governance initiatives, including the launch of a new bondholders’ stewardship working group, the adoption of a formal ESG policy by BlackRock’s LifePath UK DC investment strategy, and a new global standard for stewardship resourcing.

The Work and Pensions Committee has been reminded of the trade-off between bigger collateral buffers and investment returns, with one chief executive warning that buffers of 400 basis points would force some schemes to “pare back their growth ambitions” and increase their reliance on sponsor contributions.

The Pensions Ombudsman has ordered Sheffield manufacturer M&G Olympic Products to compensate two former employees – whom the company had made redundant – over missing pension contributions.

On the go: Manufacturing company Morgan Advanced Materials has agreed to make an accelerated contribution of £67mn to its UK defined benefit pension schemes, as part of a deal that will see the trustees increase inflation and interest rate hedging levels.