In today’s Budget speech, the Chancellor George Osborne said that the Government is going to introduce a new additional objective for the Pensions Regulator - to support scheme funding arrangements that are compatible with sustainable growth for sponsoring employers.
Gordon Sharp, director in KPMG’s pensions practice, said: “This response to the recent consultation by DWP will be welcomed by many sponsoring employers of final salary pension schemes. It reflects many companies’ views that the Pensions Regulator has not been taking a sufficiently flexible approach in agreeing required levels of prudence in the funding of pension schemes. We await publication of the precise wording for this new objective with interest.
“In our view, it is also positive that the Government will not be pursuing the proposal to introduce smoothing of assets and liabilities for scheme funding.”
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About KPMG:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
