Source · Select Committees · Work and Pensions Committee
Recommendation 5
5
Accepted
Concerns raised about the reliability of reported pension scheme funding level improvements.
Conclusion
According to TPR the majority of pension schemes emerged from 2022 with improved funding levels. However, external analysis raises questions as to how confident we can be about these improvements. We are concerned that some schemes had their funding levels negatively affected as a result of the events of September
Government Response Summary
TPR is collaborating with the FCA and NCAs to review the effective implementation of LDI guidance, setting clear expectations for trustees, and keeping guidance under review for potential amendments.
Government Response
Accepted
HM Government
Accepted
TPR is collaborating closely with the FCA and the National Competent Authorities (NCAs) (the Central Bank of Ireland and the Commission de Surveillance du Secteur Financier of Luxemburg) to review whether that guidance issued to LDI managers (by the FCA) and pooled funds (by the NCAs) has been implemented effectively. TPR’s guidance seeks to align with that put out with by the FCA and NCAs, and sets clear expectation on trustees in terms of monitoring the resilience of their LDI arrangements. TPR and FCA are keeping their guidance under review and will amend it if further clarity is required and in light of best practice. Managing systemic risk