From The Pensions Regulator:
Positive steps have been made to address pension deficits through the scheme funding regime, and clearance activity is on a downward trend, data published today by the Pensions Regulator shows.
“Trustees should not over-react in the face of the downturn, but should ensure they are active and alert to potential changes in the health of the sponsor, and to the funding level of the scheme. In responding to short-term cash flow difficulties trustees should first consider back-end loading recovery plans. Where valuations show a much larger deficit, then as we said in our October statement, this may result in longer recovery plans being proposed. We will of course keep our approach under review as the situation develops.”
Economic factors affecting recovery plans received over the next year will be very different. During this time the regulator expects to see:…
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