New Funding and Investment Strategy Regulations Report

New Funding and Investment Strategy Regulations Report

08 Jul 2024

At their next valuation on or after 22 September 2024 all defined benefit (DB) pension schemes need to set a funding and investment strategy in line with new regulations. Trustees and employers will rightly be focussed on the major decisions and, importantly what the right strategy path may be for their DB scheme (e.g. buyout or run-on).

Having set the strategic path, decisions then need to be made on key elements to achieve a successful outcome. These include the extent of reliance on the employer covenant, what investment strategy to adopt and the headline financial assumptions to use.  For these decisions to be reliable it is crucial they are based on information that is robust and accurate in respect of member, benefit and cash flow data. For decision-making to be timely and the management of the strategy effective, this information needs to be readily available, efficiently analysed, and regularly updated.

In recognition of the new strategy requirements, many schemes are looking to develop an understanding of their member demographics to set assumptions that reflect their own members and better manage risk in a timely and efficient way.  In this paper, we look at the Timeframe using XPS Analytics.

Read more