The Pensions Authority issue guidance for Trustees of DB Schemes
Today, the Pensions Authority issued new information for Trustees of DB schemes that sets out the Authority’s expectations of those schemes arising from the implementation of the IORP II Directive. As well as focusing on solvency, the Authority will also look at the sustainability and risk of schemes. The schemes will be categorised based on their ability to pay out the benefits promised over time, and the action taken and level of attention given to schemes by the Authority will depend on that categorisation. Some schemes will be monitored, while others will be expected to reduce benefits or wind-up. The Authority also sets out some action schemes should be taking now.
This is a significant sign-posting of the type of regulation schemes will face in the future. While it will be dependent on the IORP II legislation, it does allow schemes to start considering where they might be placed and what that means. Today’s announcement does raise a lot of questions and we will be addressing these with the Authority and our members over the coming weeks.
Click here for the link to the Authority's release.