The Pensions Regulator (TPR) new Defined Benefit (DB) Funding Code officially came into force today (12 November), with the regulator now set to improve its regulatory grip in order to ensure savers get the benefits they expect.

TPR also confirmed that it will look to share covenant guidance "later this year".

Replacing the existing DB Funding Code, introduced in 2014, the new DB Funding Code outlines TPR’s guidance and expectations on how to comply with the Funding and Investment Strategy requirements.

Laid following extensive industry consultation, the new code also aims to complement the change in DB regulations, which came into force in April this year and apply to valuations with effective dates on or after 22 September 2024.

This means that whilst the DB Funding Code officially came into force today (12 November), trustees of DB pension schemes with actuarial valuation dates on or after 22 September 2024 are required to use the new code.

Commenting on the introduction of the new code, TPR executive director of market oversight, Neil Bull, said: “I’m delighted that the new DB funding code has come into force.

“Together with the regulations, it focuses trustees’ minds on the right long-term objective for their scheme and provides clarity of our expectations.

“It will improve our regulatory grip and should ensure savers get the benefits they expect.”

Pensions Minister, Emma Reynolds, added: “DB pensions are a critical part of retirement provision for many.

“With around nine million people relying on them for their retirement income, it is essential that DB pension schemes are safe for members now and sustainable in the longer-term.

“With thanks to our industry partners for their support, today’s funding code allows for a stronger set of standards alongside providing that continued flexibility to make sure scheme members get the pension benefits they’ve worked so hard for.”

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