Stephen Timms, minister for pensions reform, said in a statement that the delay in implementing new rules would allow further consultation with pension industry experts, according to a Business Insurance report. “These are important regulations affecting private-sector defined benefit occupational pension schemes, and this is why we wanted to make sure stakeholders had the chance to make their views known,” he said in the statement.
In addition, the UK Pensions Regulator, which regulates employer pension plans in the United Kingdom, said in a statement that it would delay publication of a code of practice for the funding of defined benefit pensions until the new rules are published.
The new rules, which incorporate a European Union employer pension directive, had been expected to come into force at the end of this month.
The new plan-specific funding requirements will replace the current minimum funding mandate, which measures the liabilities of pension funds based on the yields of long-term gilts, or bonds issued by the UK Treasury, the news report said.
According to the Department for Work and Pensions, the new rules will allow the trustees of defined benefit pension plans to “develop an appropriate funding strategy which takes account of the specific factors and circumstances” of their plan.”