The UK's New DB Funding Framework Will Apply to Scheme Valuations

Revised regulations have been laid in Parliament and the new funding code will follow later this year.

The Department for Work and Pensions has published the response to its 2022 consultation on the draft Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations, together with the final draft of the regulations, which have been laid in Parliament.

The new regulations will be a key part of the new funding framework for UK defined benefit (DB) pension schemes. They will sit alongside a new DB funding code and fast-track parameters to be issued by The Pensions Regulator (TPR).

In this course, learn about the new DB funding framework. Under this framework, trustees are required to establish a "funding and investment strategy" (FIS) aiming for low dependency on the employer by the scheme's estimated significant maturity date.

By the end of this course, you should be able to:

1. Understand the key components of the new DB funding framework
2. Learn about the requirements for setting a funding and investment strategy (FIS) under the new framework
3. Explain the concept of low dependency on the employer and its significance in pension scheme management