In its announcement, the Regulator said the code provides practical guidance on meeting the requirements of plan funding legislation and sets out the standards of conduct and practice expected. Guidance for plans moving to the new funding arrangements will be available on the Regulator’s Web site, www.thepensionsregulator.gov.uk .
In addition to the code of practice, the Regulator will publish examples of funding documents to assist trustees and their advisors.
New plan funding provisions set up in the Occupational Pension Schemes (Scheme Funding) Regulations 2005 came into effect in December of 2005. According to the announcement, the new plan funding provisions include requirements for trustees to:
- prepare a statement of funding principles specific to the circumstances of each plan, setting out how the statutory funding objective will be met,
- obtain periodic actuarial valuations and actuarial reports,
- prepare a schedule of contributions,
- put in place a recovery plan where the statutory funding objective is not met.
The code of practice can be viewed here .