Industry experts have raised concerns over potential delays to The Pensions Regulator's (TPR) Defined Benefit (DB) Funding Code, following the news that a summer general election will be held on 4 July 2024.

Prime Minister, Rishi Sunak, confirmed yesterday (22 May) that the general election will be held on 4 July, and industry experts have been quick to react with their key priorities for any incoming government.

However, concerns are emerging that TPR’s new DB Funding Code could be delayed due to the election, as LCP pointed out that, even if TPR could lay the code before the end of the week, there will not be enough time for the code to be effective for the September date, with 40 days-notice required.

This means that schemes with valuation dates shortly after 22 September will to have to comply with new regulations without having the benefit of the guidance from the code on how the regulator expects schemes to interpret them.

The Department for Work and Pensions (DWP) published the final DB Funding Regulations in January, confirming that the new regime will take effect from 22 September.

However, industry experts warned at the time that “we won’t know what it will all mean until TPR publishes its new funding code”, with disappointment that the code was not shared alongside the regulations.

And whilst TPR had previously said that it was on track to share the final DB Funding Code “this summer”, with a consultation on proposals to help trustees of DB pension schemes meet new requirements for submitting a statement of strategy also held in March, industry experts have warned that the election could impact this timeline.

LCP added that, if the next government wants to pursue a different approach, there could be a “significant delay” before the new code is laid, meaning trustees would have to on the draft code that was consulted on at the end of 2022, while also taking account of changes from the draft to final regulations.

Spence & Partners practice head, Tom Pook, echoed these concerns, stating: “We have concerns on the potential for delay to implementation of the new DB Funding regime and also given the progress made to date, any lack of commitment to conclude the legislation relating to pensions dashboards.

“This would be unwelcome and potentially damaging to ever delivering the promised benefits to savers.”

TPR was unable to confirm the expected impact of the summer election at this time, as a spokesperson for TPR said: “During the pre-election period we will continue to regulate in line with our statutory objectives. Employers and trustees must continue to comply with their pension duties.

"We are working with government and other regulators on any implications for the timetable of our work.”

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