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Funding and investment: detailed guidance

Investment governance and strategy requirements, environmental and social duties, and issues affecting the funding of defined benefit pension schemes such as employer covenant and integrated risk management.

Investment

Climate-related governance and reporting

How trustees can meet the requirements for the governance and reporting of their scheme’s climate-related risks and opportunities.

Cost and charge restrictions

Charge controls and the flat fee threshold on active and deferred pension pots.

DB investment

Investment guidance for trustees and advisers running schemes that offer defined benefits.

DC investment governance

Make sure you have the right investment governance arrangements and the investment strategies you put in place provide the best chance for your pension scheme members to get a good outcome.

Employer Related Investments

Important information to help you avoid the risk of breaching employer related investment restrictions.

Private markets investment

This guidance is for trustees of occupational pension schemes who are considering investing in private markets.

Tender and set objectives for investment service providers

Trustee duties when working with providers of investment consultancy and fiduciary management services, including setting objectives for investment consultants and tendering for fiduciary management services.

Using leveraged liability-driven investment

This guidance sets out further detail on practical steps trustees can take to manage risks when using leveraged liability driven investment.

DB scheme funding

Abandonment of DB pension schemes

How trustees should deal with a proposal which involves the abandonment of a defined benefit pension scheme.

Assessing and monitoring the employer covenant

How to assess the employer covenant of a DB pension scheme as part of an integrated approach to managing scheme risks, monitoring the covenant and improving scheme security.

Asset-backed contributions

This guidance is based on our recent experience relating to asset-backed contributions and sets out our expectations of trustees when considering such arrangements.

Corporate transactions

The role of the employer and what they need to think about in relation to their scheme if considering a corporate transaction.

Integrated risk management

What a proportionate and integrated approach to risk management might look like and how trustees could go about putting one in place.

Moratoriums for employers in financial difficulty

Guidance for insolvency practitioners on the need to notify us if an employer with a defined benefit pension scheme uses a moratorium to explore rescue and restructuring options.

Mortality assumptions

How trustees should go about deciding on mortality assumptions in an actuarial valuation for a defined benefit pension scheme.

Multi-employer schemes and employer departures

Aimed at trustees of multi-employer DB schemes and their sponsoring employers to help them understand the ways an employer can manage their liabilities.

Protecting schemes from sponsoring employer distress

Practical recommendations for spotting signs of corporate distress and how trustees can protect their pension scheme.

Regulated apportionment arrangements

Important information if you are considering making a regulated apportionment arrangement (RAA) application.

Scheme funding and clearance case studies

These scheme funding case studies demonstrate how the regulator, employers and trustees have worked together to resolve funding issues.

Scheme funding FAQs

This section contains some FAQs in relation to scheme funding along with our responses.

Trustee Toolkit online learning

Free online learning on DB scheme funding and managing investments in pension schemes. You must log in or sign up to use the Trustee Toolkit.

Trustee Toolkit