The Pensions Regulator’s Annual Funding Statement 2024
The Pensions Regulator’s Annual Funding Statement 2024
03 May 2024
What you need to know
- The Pensions Regulator (TPR) published its Annual Funding Statement (AFS) on 24 April 2024. It is aimed at trustees and sponsors of occupational defined benefit pension schemes and is particularly relevant to schemes with valuations between 22 September 2023 and 21 September 2024. It is also relevant for schemes whose funding strategies and investment allocations have been significantly impacted by the changes in market conditions over recent years.
- TPR recognises that many schemes have seen material improvements to their funding levels. TPR says that trustees of these schemes should consider whether continuing with their existing strategy and level of risk is in the best financial interest of members. TPR continues that when reflecting on this, trustees should consider the range of options available, including running on to generate additional surplus to benefit members and employers, entering into a consolidator or insurance arrangement, and buyout.
- Trustees of schemes in deficit on a technical provisions basis are encouraged to agree a recovery plan that is as short as reasonable, taking employer affordability into account.
- TPR directs trustees to consider the steps they can take to broadly align with the new funding code when it is published (expected over the summer).