6 October 2005 - Revised timetable for new pension scheme funding regime
New scheme funding requirements will come into force on 30 December 2005 confirmed Minister for Pensions Reform, Stephen Timms today. The regulations will apply to most private sector defined benefit occupational pension schemes and will replace the current minimum funding requirement.
This follows further consultation with pensions industry experts on draft regulations amended to take account of responses to the general consultation earlier this year. The revised timetable will allow the department to make the necessary technical amendments to these detailed regulations.
Minister for Pensions Reform, Stephen Timms, said:
“These are important regulations affecting private sector defined benefit occupational pension schemes and this is why we wanted to make sure stakeholders had the chance to make their views known.
“We are all agreed that it is in everyone’s interest that we get the regulations right, so that is why we have taken the extra time to take on board stakeholders’ comments.”
The intention is that the regulations will still apply to actuarial valuations based on an effective date of 22 September onwards which are completed after the revised coming into force date of 30 December 2005.
Schemes starting a valuation between 22 September and 30 December 2005 will be allowed a further three months, in addition to the total of fifteen months generally allowed, to complete their first valuation under their new requirements and put an updated schedule of contributions in place.
Notes for Editors
- The new scheme funding requirements are part of the wider pension reform agenda set out in the Pensions Act 2004. Elements of the new scheme funding requirements take account of the funding requirements in Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision, which Member States were required to implement by 22 September 2005.
- A coming into force date of 31 October 2005 was announced in a joint statement and press release issued by the Department and the Pensions Regulator on 1 September. http://www.dwp.gov.uk/mediacentre/pressreleases/2005/sep/pens16-010905.asp
- The Pensions Regulator will be making a separate announcement on the implications of this revised timetable for the code of practice on Funding defined benefits and the other guidance which will be available to trustees and their advisers who will be required to implement the new legislative requirements on scheme funding. http://www.thepensionsregulator.gov.uk
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