A wish list for 2020
We are looking forward to the launch of the DB funding regime which will help schemes progress towards their long-term objectives. Clarity and detail will enable the industry to move past this period of uncertainty. For example, in the new two track approval system, ‘fast-track’ schemes will be able to meet their objectives more easily. It’s vital that the costs of regulation don’t exceed the benefits, as nobody wants to see an over-regulated environment, but we can all recognise the benefits of schemes having a clear regulatory foundation.
We hope this year to see a new DB Master trust accreditation framework so that schemes can fully understand what DB master trusts do and the benefits they offer. However, we would stop short of the process undertaken by DC master trusts last year. The complexity and costs of this would be a deterrent to DB consolidation and would have to be borne by existing members.
We are also looking forward to seeing higher standards of trusteeship as a result of the consultation on the Future of Trusteeship and Governance, and how it will address the challenge of recruiting trustees, which is a key challenge for many smaller DB schemes.
GMP equalisation will continue to be a challenge for many schemes. By converting all the benefits to a standard benefit formula, how much pressure and advantage could there be to use GMP as the catalyst to simplify benefits? We want to identify within the market what the payback could be first.
For further information please contact Lindsay Davies.