After the shock and awe of Mansion House and the Autumn Statement, where will we get to in 2024?

As a bare minimum, we expect the updated Defined Benefit (DB) Funding Regulations to be finalised in the first quarter of the year, although it now seems unlikely the code and updated covenant guidance will be in place until the autumn.

The degree to which both have evolved to take account of the industry’s calls for greater flexibility and the Chancellor’s calls (and those of the opposition) in support of schemes
considering investment in ‘productive finance’ remains to be seen.

It will also be interesting to see how the new regime will sit alongside the consultation
expected this winter on measures to ensure surplus can be shared with scheme members
and a potentially expanded role for the Pension Protection Fund (PPF), including the possibility of a 100 per cent PPF underpin.

It seems doubtful the ‘pot for life’ proposals can make much headway in this parliament
given the different views of stakeholders on their desirability and the challenge they
present to current employer-led provision.

We hope the impetus in support of the wider application of collective defined contribution (CDC) schemes is maintained, and across the political spectrum, we expect calls for more scheme consolidation to be the order of the day.

We hope the consultations on DB consolidation remain broad and flexible enough to allow many now well-funded schemes, supported by their sponsors and trustees, to continue to see a future offering their tailored, high-quality benefits to members.

---