ICAS

Quicklinks

  1. About Us

    Find out about who we are and what we do here at ICAS.

  2. Find a CA

    Search our directory of individual CAs and Member organisations by name, location and professional criteria.

  3. CA Magazine

    View the latest issues of the dedicated magazine for ICAS Chartered Accountants.

  4. Contact Us

    Get in touch with ICAS by phone, email or post, with dedicated contacts for Members, Students and firms.

Login
  • Annual renewal
  • About us
  • Contact us
  • Find a CA
  • Advantage
  1. About us
    1. Governance
    2. ICAS Strategy 2030
  2. Members
    1. Become a member
    2. Newly qualified
    3. Manage my membership
    4. Benefits of membership
    5. Career support
    6. Mentoring
    7. CA Wellbeing
    8. More for Members
    9. Area networks
    10. International communities
    11. Get involved
    12. Top Young CAs
    13. Career breaks
    14. ICAS podcast
    15. Newly admitted members 2023
  3. CA Students
    1. Student information
    2. Student resources
    3. Learning requirements
    4. Learning updates
    5. Learning blog
    6. Totum Pro | Student discount card
    7. CA Student wellbeing
  4. Become a CA
    1. How to become a CA
    2. Routes to becoming a CA
    3. Find a training agreement
    4. Why become a CA
    5. The CA qualification
    6. Accredited qualifications and exemptions
  5. Employers
    1. Train a Chartered Accountant
    2. Resources for Authorised Training Offices
    3. Professional entry
    4. Apprenticeships
    5. Learning redefined
  6. Find a CA
  7. ICAS events
    1. CA Summit
    2. Digital Practice Conference 2023
  8. CA magazine
  9. Professional resources
    1. Anti-money laundering
    2. Audit and assurance
    3. Brexit
    4. Business and governance
    5. Charities
    6. Coronavirus
    7. Corporate and financial reporting
    8. Cyber security
    9. Ethics
    10. Insolvency
    11. ICAS Research
    12. Pensions
    13. Practice
    14. Public sector
    15. Sustainability
    16. Tax
    17. Vulnerable persons toolkit
    18. EDI toolkit
  10. CPD - professional development
    1. CPD - Everything you need to know
    2. CPD courses and qualifications
    3. CPD news and updates
    4. CPD support and advice
    5. Career support
  11. Regulation
    1. Complaints and sanctions
    2. Regulatory authorisations
    3. Guidance and help sheets
    4. Regulatory monitoring
    5. ICAS regulatory functions report 2022
    6. Regulation Strategy
    7. ICAS Regulation News
    8. Guidance for audit firms: ISQM(UK)1
    9. Engaging positively with a complaint
    10. What should I do if my client leaves?
    11. Changes to ICAS’ Public Practice Regulations
    12. New AML monitoring regime
  12. CA jobs
    1. CA jobs partner: Rutherford Cross
    2. Resources for your job search
    3. Advertise with CA jobs
    4. Hays | A Trusted ICAS CA Jobs Partner
    5. Azets | What's your ambition?
  13. Work at ICAS
    1. Business centres
    2. Meet our team
    3. Benefits
    4. Vacancies
    5. Imagine your career at ICAS
  14. Contact us
    1. Technical and regulation queries
    2. ICAS logo request

ICAS responds to The Pensions Regulator’s DB Funding Code of Practice consultation

  • LinkedIn (opens new window)
  • Twitter (opens new window)
By Christine Scott, Head of Charities and Pensions

2 September 2020

Main points

  • ICAS is broadly supportive of the proposed twin track approach to compliance with scheme funding requirements.
  • The new Funding Code of Practice should be reviewed within five years of implementation.
  • The Code should be sufficiently flexible to deal with any future economic shocks.

The ICAS Pensions Panel has responded to The Pensions Regulator’s proposals for a new Funding Code of Practice for Defined Benefit pension schemes.

The Pensions Regulator (TPR) is planning to issue a new Funding Code of Practice for defined benefit (DB) pension schemes and the new Code may be finalised in 2021. As the DB sector matures, TPR is looking to establish an enduring approach to its oversight of DB schemes.

The ICAS Pensions Panel has responded to the first of two consultations on the new Code. This first consultation is about the broader principles expected to underpin the new Code and a proposed new twin track approach to compliance, with a lighter touch fast track route being available to schemes which meet the criteria and a bespoke route for other schemes.

Why is a new Code being planned?

The backdrop to the development of the new Code includes concerns about the impact on DB schemes, scheme members and the Pension Protection Fund (PPF) of high-profile corporate failures.

Regulations flowing from the new Pensions Schemes Bill (2019-21), currently awaiting its second reading in the House of Commons, will support the new Funding Code of Practice.

The COVID-19 pandemic has delayed both the Bill and the development and implementation of the planned new Code. A further TPR consultation on the Code is now expected next year; this will focus on the detailed funding requirements for the new fast-track and bespoke routes to compliance.

About the proposed twin track approach

The ICAS Pensions Panel is broadly supportive of the direction of travel of the proposed regulatory approach, in particular for schemes which are closed to the future accrual of benefits, and we believe that the twin track approach to compliance within the new Code will be a good way of enabling TPR to target its resources more effectively.

The approach will also give clarity to both pension trustees and sponsoring employers as to what is expected of them. We also support the integrated risk management model which will continue to underpin how schemes are managed and regulated.

With the proposed regulatory approach intended to operate over the very long-term and concerns about its impact on the investment strategies of schemes, it would make sense for TPR to undertake a post-implementation evaluation of the twin track approach within five years of commencement.

Impact of COVID-19 

Given the impact of the COVID-19 pandemic on the covenants of sponsoring employers (particularly those in the worst-hit industries) and on schemes, it is inevitable that this will impact on the number of schemes likely to be eligible for fast track.

Extremely low interest rates generally and the low rates applied to the calculation of scheme liabilities could also impact on the eligibility of schemes for fast track. There have already been contribution holidays as a result of the COVID-19 pandemic, and this should be considered by TPR in assessing whether a scheme’s recovery plan length is reasonable. Recovery plans may now need to be a bit longer than envisaged in the consultation.

In August, TPR made an announcement recognising that the fast track approach will need to be adjusted to take account of the impact of low interest rates and we welcome this announcement.

Future economic shocks

We believe that the new approach to compliance needs to be sufficiently flexible to deal with any future economic shocks, including the ability to revisit the criteria for fast track as is currently planned in relation to the impact of low interest rates.

Look out for further developments in 2021 when TPR is expected to set out more detailed proposals for the DB Funding Code of Practice.

COVID-19: Guidance on pension scheme financial reports and audit

By Christine Scott, Head of Charities and Pensions

2 June 2020

TPR updates on pensions during the pandemic

By Christine Scott, Head of Charities and Pensions

24 June 2020

2023-09-camag 2023-09-camag

Footer links

  • Contact us
  • Terms and conditions
  • Modern slavery statement
  • Privacy notice
  • CA magazine

Connect with ICAS

  • TikTok (opens new window) TikTok Icon
  • Twitter (opens new window) Twitter Icon
  • LinkedIn (opens new window) LinkedIn Icon
  • Instagram (opens new window) Instagram Icon
  • Youtube (opens new window)

ICAS is a member of the following bodies

  • Consultative Committee of Accountancy Bodies (opens new window) Consultative Committee of Accountancy Bodies logo
  • Chartered Accountants Worldwide (opens new window) Chartered Accountants Worldwide logo
  • Global Accounting Alliance (opens new window) Global Accounting Alliance
  • International Federation of Accountants (opens new window) IFAC
  • Access Accountancy (opens new window) Access Acountancy
  • Women in Finance Charter (opens new window) Women in Finance Charter

Charities

  • ICAS Foundation (opens new window) ICAS Foundation
  • SCABA (opens new window) scaba

Accreditations

  • ISO 9001 - RGB (opens new window)
© ICAS 2022

The mark and designation “CA” is a registered trade mark of The Institute of Chartered Accountants of Scotland (ICAS), and is available for use in the UK and EU only to members of ICAS. If you are not a member of ICAS, you should not use the “CA” mark and designation in the UK or EU in relation to accountancy, tax or insolvency services. The mark and designation “Chartered Accountant” is a registered trade mark of ICAS, the Institute of Chartered Accountants of England and Wales and Chartered Accountants Ireland. If you are not a member of one of these organisations, you should not use the “Chartered Accountant” mark and designation in the UK or EU in relation to these services. Further restrictions on the use of these marks also apply where you are a member.

Our cookie policy

ICAS.com uses cookies which are essential for our website to work. We would also like to use analytical cookies to help us improve our website and your user experience. Any data collected is anonymised. Please have a look at the further information in our cookie policy and confirm if you are happy for us to use analytical cookies: