The majority (91 per cent) of pension professionals do not believe that the Defined Benefit (DB) Funding Code will be in force by October 2023, given the work still required and the market volatility seen late last year, research from Broadstone has revealed.

However, the survey also found that, "more surprisingly", 71 per cent did not think the DB funding regime was in any need of reform, while just under a fifth (19 per cent) thought that reform was necessary, and 8 per cent were unsure.

Despite this, three-quarters of the survey respondents said that if the code is laid as drafted they expected the impact to be increased pressure on sponsors to pay higher contributions, even where the risk to members’ benefit security is low.

Broadstone head of policy, David Brooks, highlighted the findings as demonstration of the strong concerns held in the trustee and pensions community about the incoming funding code, arguing that many schemes are already having the right conversations despite delays to the code.

“Many continue to be concerned about the high hurdle that the code imposes on schemes and sponsors for what will, in a lot of cases, appear to be very limited gain and sponsors will no doubt find further contribution requests hard to stomach given the general reports of much improved funding," he continued.

“In many ways, the responses are a back handed compliment on the work the regulator has done over the past few years. They have discussed in their annual statement long-term targets, the integrated risk management model and focussing on situations of sponsor distress.

“This has directly resulted in good funding and investment practices being adopted by the well-advised schemes and left them now questioning the need to go further.

"The upshot that many schemes are having the right conversations and doing the right things in absence of a restrictive and complex code.”

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