The Pensions Regulator (TPR) has confirmed that it is extending the submission deadline for responses to its defined benefit (DB) funding code consultation to 2 September 2020.

The regulator had initially set a deadline of 2 June 2020.

In an interview with Lane Clark and Peacock (LCP), TPR executive director of regulatory policy, analysis and advice, David Fairs, said that the regulator recognised that respondents may not have the time to focus on all the issues, due to the current circumstances.

“Many of the principles and issues we raise in that consultation are still relevant, but we recognise that given situation that we are in, trustees, employers and advisors might not have the time to fully focus on all the issues that we raise,” he stated.

Fairs noted that those schemes that has embraced the core concepts of integrated risk management and long-term goals outlined in the consultation were likely to be best placed to weather the current financial conditions.

He added that, in these uncertain times, trustees may have to make “difficult decisions”, but that providing they do the “best they can” in following TPR’s guidance, then the regulator would respect their decisions and not look to challenge them retrospectively, except in cases of criminal behaviour.

With scheme valuation dates at the end of March and in the coming months, Fairs said that TPR’s annual funding statement, due after Easter, would provide further guidance on how to approach valuations.

Fairs added that TPR had seen varied levels of interests regarding pension transfers, with some schemes having low levels of interest and other having a high level of requests.

Commenting, LCP partner, Steven Taylor, said: “We welcome the further clarity which TPR have provided in light of the current situation, especially as regards the difficult position of trustees and what is expected of them.

“With regard to the DB funding code, we are sure that many would welcome extra time to respond to this important and detailed document and to consider whether aspects of it remain appropriate in the light of recent shock events.”

The consultation is seeking views on changes to the funding code to better manage risks on long-term scheme funding and investment strategy planning.

TPR hopes that the consultation will allow it to create a clearer framework for DB funding and give clarity on how its ‘twin-track’ approach on scheme valuations will work.

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