DB scheme triennial valuations from 22^nd September 2024 onwards will need to be carried out under the new Funding Code regime.

Many schemes find themselves in a different position to where they were when the Funding Code was just a first thought; for example many schemes find themselves with improved funding levels and reduced reliance on their sponsor. In some of these cases, however, this new environment now comes with different challenges, such as considering the merits of running on vs transferring to an insurer.

Nevertheless, we hope that the increased attention in the Code on long-term planning, regardless of the valuation track a scheme chooses to take (Fast Track or Bespoke), focuses minds on managing risk over a scheme’s entire journey. This should include proportionate covenant analysis as a crucial input into that risk profile too, as is reflected in the new legal requirement to consider covenant within the Funding and Investment Strategy Regulations.

With the new Statement of Strategy templates and the upcoming covenant guidance, both of which are vitally important in this new era of detailed documentation, our new DB Funding Code Handbook provides some clarity on the key steps for Trustees to consider when navigating the new Code.

These include:

• DB schemes
• Defined Benefit (DB)
• Pension Trustees