Hogan Lovells

Key Dates

Annual funding statement 2018 issued on 5 April 2018.


The Pensions Regulator (tPR) has issued its annual funding statement aimed, in particular, at schemes whose valuations have effective dates between 22 September 2017 and 21 September 2018 (Tranche 13).  Points to note include the following.

o    trustees should consider strengthening the technical provisions, increasing contributions or shortening the recovery plan. 

o    if dividends and other forms of "covenant leakage" are disproportionate to contributions, tPR expects a short recovery plan; and

o    strengthening short term security should be considered, such as through contingent assets and guarantees.

 o    scheme liabilities should be prioritised over shareholder returns;

o    cash should be retained within the employer to fund sustainable growth and to address the pension deficit;

o    an appropriate reward for employer growth should be secured and / or other forms of support (such as contingent assets and guarantees) should be maximised; and

o    where there is limited affordability of additional contributions, trustees should seek opportunities to reduce risks.

Date Accessed: 28/05/2022