TPR Guidance 'New models and options in DB pensions schemes'

Commenting on The Pensions Regulator’s guidance ‘New models and options in defined benefit pensions schemes’, Laura McLaren, Head of DB Scheme Actuary Services, Hymans Robertson says:

“We welcome TPR’s latest guidance to support trustees and sponsors in considering the growing range of endgame options. The landscape is changing quickly, and this underscores the sheer breadth of issues to think about. Indeed, as this round-up of factors and case studies show, there is no one-size-fits all answer, and it is important that scheme and sponsor specific circumstances are robustly considered. Schemes should spend time carefully working through the range of options with an open mind. 

“Landing closely behind last week’s DB options consultation response, and ahead of the hotly anticipated Pension Schemes Bill, the guidance looks set to be the first in a series of instalments and reiterates the government’s desire for progress within this area. As the legislative landscape evolves, TPR will need to consult and publish more detailed guidance on the factors that trustees should take into account when deciding whether to utilise the new statutory override power and when designing a framework for ongoing surplus release. Although trustees have generally been positive about the growing surplus flexibility, clear guidance being shared to support decision making is seen as a critical piece of the puzzle. This is a helpful first step and hopefully signals TPR’s focus in supporting this evolving area at pace.”