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MPs seek UK DB pensions overhaul: with PPF surplus, refocus TPR, relax de-risking for open schemes, and enable zero PPF levy before September 2024 funding regulations

Published on: 27 March 2024

Published by a Law360 reporter
Legal News
Article summary

The Work and Pensions Committee (WPC)

The WPC has concluded that The Pensions Regulator’s (TPR) primary objective of protecting the Pensions Protection Fund (PPF) is now redundant, as the lifeboat fund holds a £12bn funding surplus. It says TPR should pivot to safeguarding both past and future benefits for members, helping ensure open schemes are not compelled to shut to new accruals. This was a central recommendation in a report on DB pensions, arising from a comprehensive inquiry launched in March 2023.

Stephen Timms, who chairs the committee, said the PPF’s markedly stronger financial position offers welcome flexibility for government to prevent open schemes being constrained by excessively cautious regulatory limits, a development the committee applauds.

TPR’s statutory objectives include reducing the likelihood that the PPF must pay compensation to members of a retirement scheme...

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