On point paper:
Missing the target: How over-rigid pension scheme funding proposals could have unwelcome consequences
10 October 2022
The Department for Work and Pensions is currently consulting on draft regulations which will lay the legal framework for a new DB pensions funding regime, expected to result in the biggest shake up in the management of DB pensions since 2004/05.
In this paper, we raise major concerns about the unintended consequences that could arise from the way the DWP regulations have been drafted. What is more, we challenge the lack of a meaningful impact assessment from the DWP, with our estimate of the potential impact on pension schemes being in excess of £30bn – a cost that will ultimately be borne by sponsors and pension scheme members.