The Pensions Regulator publishes on its website:
“In its latest Annual Funding Statement (AFS), The Pensions Regulator (TPR) is clearer in its guidance on how schemes should approach forthcoming scheme valuations.
Trustees and employers should be agreeing a clear strategy for achieving their long term goals, recognising how the balance between investment risk, contributions and covenant support may change over time, particularly as schemes become more mature and potentially better funded.
TPR’s expectations are outlined in its latest AFS, which clarifies how it expects trustees and employers to fund a scheme. It is particularly relevant to schemes conducting valuations with effective dates between 22 September 2018 and 21 September 2019 (Tranche 14).
TPR knows that successfully run schemes often have a long term strategy agreed by trustees and employers that includes a long term funding target. This target is the level of funding the scheme will need to achieve in order to reduce its dependence on the employer and particularly when it has reached an appropriate level of maturity. This will then allow it to be managed with a high degree of resilience to investment risks.”
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