Guidance: The Pensions Regulator's defined benefit funding code of practice

1.1. This explanatory memorandum has been prepared by The Department for Work and Pensions and is laid before Parliament by Command of His Majesty.

1.2. This memorandum contains information for the Joint Committee on Statutory Instruments.

2.1. Emma Reynolds, Parliamentary Under Secretary of State (Minister for Pensions) at HM Treasury and at the Department for Work and Pensions (DWP), confirms that this Explanatory Memorandum meets the required standard.

2.2. Sam Hainsworth, Deputy Director for Defined Benefit Pensions Policy, at DWP, confirms that this Explanatory Memorandum meets the required standard.

3.1. Nicola Lloyd at the Department for Work and Pensions, [email protected] can be contacted with any queries regarding the instrument.

Part One: Explanation and context of the Instrument

4.1. The Pensions Regulator’s (TPR) Defined Benefit Funding Code of Practice (the draft Code) provides practical guidance for trustees on how to comply with all defined benefit (DB) scheme funding requirements. The Pensions Regulator regulates around 5,000 private sector occupational DB pension schemes in the UK. The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024 (the Regulations) delegates certain matters to the draft Code. The draft Code will support trustees, sponsoring employers and their advisers in planning and managing their DB scheme funding over the long term and will assist them in complying with the legal requirements. It will replace the current Code of Practice No 3: Funding defined benefits: Second issue published in 2014.

Where does the legislation extend to and apply?

4.2. The extent of this instrument (that is, the jurisdiction(s) which the instrument forms part of the law of) is the United Kingdom.

4.3. The territorial application of this instrument (that is, where the instrument produces a practical effect) is the United Kingdom.