29 April 2025
TPR today published its Annual Funding Statement 2025, the first under the new DB funding regime.
Lucy Dunbar, partner, Sackers comments: “Whilst DB schemes are continuing to see strong funding positions, with 85% estimated to be in surplus on a technical provisions basis as at the end of last year, TPR nonetheless expects most to be shifting thinking towards endgame planning. Against the backdrop of “recent trade and geopolitical tensions”, TPR also recognises the potential for increased uncertainty and volatility to influence scheme funding. Trustees are therefore encouraged to understand the risks posed to their scheme’s investment strategy and employer covenant, as well as the macroeconomic impact, including around interest and inflation rates, as well as global economic growth in general.”
“With specific obligations to plan for the future now baked into legislation, this feels like a seminal moment. Whilst the funding position of many DB schemes is undoubtedly healthier than it has been in a long time, TPR and the pensions industry have been gearing up for the new DB funding regime for some time now. So much of the key messaging in this latest annual funding statement will come as no great surprise.”
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