Pensions - Articles - Docklands Light Railway Pension Scheme report published


The Pensions Regulator today published details of its funding investigation into the Docklands Light Railway Pension Scheme (the 'Scheme'). The report highlights how the regulator will take action to protect member savings where defined benefit (DB) schemes have missed statutory deadlines to provide valuations.

 The trustees of the Scheme and its employer, Serco Limited, were unable to reach agreement on the actuarial valuation with an effective date of 1 April 2009.

 Initially, the regulator facilitated discussions between the trustees and Serco Limited to explore whether they could agree.
 But as the negotiations were unsuccessful, the regulator reached the view that it was appropriate to consider exercising its funding powers. The regulator suspended its regulatory action due to further negotiations between the parties. These negotiations led to the trustees and Serco Limited (as well as Docklands Light Railway Limited) reaching a settlement.

 Under this settlement, the Scheme’s funding deficit shown in the 1 April 2012 actuarial valuation (£36.1 million) will be cleared by January 2018, with over £20 million payable by January 2016. In total, there was an agreement to pay £37 million to the Scheme with £33 million coming from Serco Limited and £4 million from Docklands Light Railway Limited, the principal employer under the Scheme documentation.

 A section 89 report has now been published setting out the action taken by the regulator in the case. Lesley Titcomb, chief executive at The Pensions Regulator, said:

 “Our action in this case demonstrates we will work closely with schemes to address non-compliance but also that we have a low tolerance for late actuarial valuations.

 “As late actuarial valuations can create uncertainty and could increase risks to both the scheme and the employer, we will consider whether to use our powers to protect member outcomes and ensure employers meet their obligations.”

 You can find the report, section 89 reports, by clicking here.

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.