Scheme funding


Trustees of DB schemes must ensure that the statutory funding objective is met.

Trustees need to obtain either annual full actuarial valuations or a triennial valuation backed up by annual actuarial reports on developments. If the scheme is underfunded the trustees, with actuarial advice, will have to devise a “recovery plan” setting out proposals to make up the shortfall. All the relevant documents must be sent to the Pensions Regulator.

How we can help

  • Advice to employers and trustees of DB schemes on the statutory requirements of scheme funding
  • Analysis of the legal rights and obligations under Scheme trust deeds and rules
  • Preparation of key scheme funding documentation
  • Negotiation with TPR on behalf of trustees and employers on scheme funding matters
  • Advice to schemes selected for TPR’s programme of proactive engagement
  • Advice on the legal requirements for investment arrangements to meet scheme funding requirements.

Recent experience

  • Advice to the trustees of the EMI pension scheme following a Warning Notice on scheme funding issued by TPR
  • Advice to schemes on TPR’s latest annual statement on scheme funding
  • Advice to schemes selected for TPR’s early engagement programme.