Majority unconvinced new DB funding regime will impact scheme closures

Nearly three quarters (71 per cent) of pension professionals believe that the new defined benefit (DB) funding regime will have little or no impact on the pace of open scheme closures, a poll from the Society of Pension Professionals (SPP) has revealed.

The poll found that nearly a quarter (22 per cent) believe it will result in more DB scheme closures, while just 7 per cent believing there will be fewer closures as a result.

The findings were based on a poll of SPP members at an even on the opportunities and challenges of open DB schemes, including around regulatory support.

The Department for Work and Pensions (DWP) published the final DB funding regulations earlier this year, while THe Pensions Regulator's DB Funding Code is expected to follow this summer, before coming into effect from September 2024.

Commenting on the findings, DLA Piper partner, and panel chair, Joel Eytle, said: “As always, the SPP event facilitated a diverse mix of views from a broad range of industry professionals.

“Pension professionals may have a range of views about how best to address the challenges and opportunities of open DB schemes but make no mistake, the message is clear that DB will remain an important part of the pensions landscape for many years to come.”

Share Story:

Recent Stories

DB risks
Laura Blows discusses DB risks with Aon UK head of retirement policy, Matthew Arends, and Aon UK head of investment, Maria Johannessen, in Pensions Age's latest video interview

Sustainable equity investing in emerging markets
In these highlights of the latest Pensions Age video interview, Laura Blows speaks to Premier Miton Investors fund managers, Fiona Manning and Will Scholes, about sustainable investing in equities within emerging markets

Building investments in a DC world
In the latest Pensions Age podcast, Sophie Smith talks to USS Investment Management’s head of investment product management, Naomi Clark, about the USS’ DC investments and its journey into private markets
High-yield Investing
Laura Blows discusses short duration global high-yield strategies with Royal London Asset Management head of global credit, Azhar Hussain, in the latest Pensions Age podcast