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TPR Statement

Simon Kew - Director of PensionsOn Friday, The Pensions Regulator (TPR) issued its long-awaited statement on pension scheme funding and how valuations should be approached, in the current economic climate. The 33 points issued by TPR, are at the end of this newsletter.

I thought it may be helpful to provide Jackal Advisory’s initial thoughts on the statement, based on our considerable experience of TPR and of the issues being faced by trustees and employers.

In short, the statement does not appear to change the regulator’s position. Undertake an assessment of covenant, which allows the scheme actuary to advise on appropriately prudent assumptions. These assumptions, which include the assumptions on investments, provide a Technical Provisions ‘target’ which will be reached over a number of years, determined by what is ‘reasonably affordable’ for the sponsor to make available in deficit repair contributions i.e. the recovery plan. (more…)

Category : Employer Covenant — admin @ 9:32 am May 9, 2012

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