This new DB funding code sets out TPR’s guidance and expectations on how to comply with the funding and investment strategy (FIS) requirements.
The new DB funding code was laid in Parliament on 29 July 2024 and is expected to come into force in late November.
To comply with the new requirements, schemes must submit a statement of strategy. The new DB funding code and FIS requirements will help schemes focus on their long-term objectives. TPR has today published supporting documents to assist trustees with meeting their obligations.
TPR’s Executive Director of Market Oversight, Neil Bull said: “This is a milestone moment for DB trustees, as after years of development, schemes with relevant valuation dates should now be referring to the new funding code, with the rest to follow on in the next two years.
“We have engaged extensively with industry in the development on our new DB funding code. Our expectations are now clear, and I hope trustees find the funding code guidance helpful as they navigate their way through either their first Fast Track or Bespoke valuation.
“We’ve listened to feedback and reduced the data ask of schemes in certain situations such as for well-funded and small schemes. Now, ahead of the launch of a new digital submission platform in the spring, we’re giving schemes information to help them prepare in advance.”
The DB regulations, which align with the DB funding code, came into force in April this year and apply to valuations with effective dates on or after 22 September 2024.
Statement of strategy templates
Legislation requires trustees and scheme managers to submit their statement of strategy to TPR 'as soon as reasonably practicable' after preparing their funding and investment strategy. However, TPR will not expect valuation information, including the statement of strategy, to be submitted until its new digital platform for receiving valuations and related materials is up and running in the spring.
For trustees and scheme managers to understand its expectations in relation to the new requirements for a funding and investment strategy and statement of strategy, TPR has published statement of strategy illustrative templates and a list of the data and information for insertion into the relevant illustrative template.
TPR has also published a summary of the key themes arising from the responses received to its consultation on the statement of strategy, and the key changes made to the proposed templates because of this feedback.
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