The Pensions Regulator (TPR) does not have the resources to move from a trigger based system to a more holistic approach with regards to DB funding according to LCP senior partner and ACA honorary secretary of the Association of Consulting Actuaries (ACA) Bob Scott.

Speaking at a National Association of Pension Funds (NAPF) regulation conference, Scott stated that the regulator will as a result moving to a more holistic approach “have a worksheet that looks at covenance strength, investment risk and funding all together.”

Such elements are likely to be explored within the 2013 annual statement and the revised code of practice and Scott stated that the idea sounds “very sensible” and “just the sort of thing that is required.” However he added that whilst the regulator may not have the resources, he added that “it does not have the expertise particularly on the investment side to assess some of the more complex investment strategies that some of the larger schemes use.”

Scott concluded: “From an ACA’s perspective we want to see consistency. We would like to have transparency and clarity. We also want to see quicker responses as it can take almost nine months to a year for the regulator to respond to recovery plans and by that time the fund could well be into its next valuation cycle.”

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