TPR Annual Funding Statement 2026

Commenting on the Annual Funding Statement from TPR, Laura McLaren, Head of DB Scheme Actuary, Hymans Robertson, said: 

“This year’s Annual Funding Statement reinforces themes that are now fairly well established – applying the new funding code in practice, navigating endgame decisions and managing surplus – while also signalling further regulatory guidance and wider industry developments. Despite geopolitical and market uncertainty, scheme funding remains resilient, with TPR estimating that as many as 60% of schemes are now in buy out surplus. The shift from deficit repair to long term planning is clearly here to stay.

“With many schemes still completing their first valuations under the new regime, it’s no surprise that the statement continues to clarify requirements and address common queries. Insight on actual submissions remains limited, but TPR plans to analyse 2025 valuation statements once received, which should bring some helpful transparency around how strategies are being assessed.

“Although TPR hasn’t shared a precise Fast Track/Bespoke split, early indications that around 80% of schemes could meet Fast Track at little or no employer cost look about right. Keeping Fast Track parameters unchanged provides welcome stability. Notably, TPR emphasises an “objectives first” approach before choosing Fast Track or Bespoke, echoing our view that strategy should lead and compliance should follow.

“Trustees are also encouraged to consider endgame options and develop surplus policies. This is particularly timely given the new Pension Schemes Act, which lays the groundwork for surplus use. The focus now shifts to implementation, and it’s positive that TPR will publish further guidance in the coming months, including some early views on surplus use ahead of more detailed regulations. Getting this important guidance right will be essential to ensure schemes, trustees and employers can engage confidently while protecting member outcomes.

“Overall, we welcome the sense that valuations are increasingly becoming strategic tools, an opportunity to refine long term plans and assess progress. Indeed, after a transformative period for DB schemes, trustees and sponsors should seize this moment to review and strengthen strategy, whether or not a valuation is currently underway.”

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