2025 Scheme Valuations the first to comply with TPR’s Funding Code of Practice

DB Schemes completing a valuation this year will be the very first to comply with TPR’s new Funding Code of Practice, providing a perfect opportunity for in-depth review, says Hymans Robertson as its latest publication is released today. The report outlines the key areas of compliance with the new Code – including formalising a long-term objective, integrating these into valuations and submitting a statement of strategy - that trustees must adhere to. 

There has a been huge transformation in the DB pensions market over the last few years, and to meet the requirements of the Code, schemes must take time and care to review where they believe the scheme is ahead of their 2025 valuations. The leading pensions and financial services consulting firm warns that DB schemes should see this as a chance to pause and reflect on long-term ambitions, against the evolving market landscape. Early planning is key to assist with longer-term sustainable decision making. 

Commenting on the need for sponsors and trustees to prepare sooner, rather than later for their DB scheme valuations, Laura McLaren, Head of DB Scheme Actuary Services, Hymans Robertson, says:

“Starting to plan early for the valuation is key both for trustees and sponsors to smoothly integrate the new regulations set by TPR as they undertake this year’s valuation. DB schemes should grasp the opportunity to pause and review their position after a transformative few years within the DB landscape.

“Improved funding positions alongside the expansion of the risk transfer and provider markets, and the increasing talk of improving flexibility for surplus, afford DB schemes completely different options to previous years. Combined with the new Funding Code, and changes to the investment landscape, there has never been a better time to review strategies. However, DB schemes must not underestimate the time needed to meet the Code’s additional compliance requirements. 

“We would urge trustees and sponsors to engage meaningfully on the longer-term bigger picture considerations together, to ensure that they’re not only meeting the requirements of the code, but also maximising the opportunity to improve outcomes for the scheme and its members.” 

A copy of Valuation Themes 2025 publication can be found here.