OUR PEOPLE

How should a scheme in deficit be treated when dealing with events that may impact on the scheme?

A scheme in deficit on any basis should be treated in the same way as any other material creditor. Managing any conflicts, the parties should work together to understand the nature and the impact of the event and the appropriate mitigation for it, supported by independent professional advice where appropriate.

How should we identify and manage risks when developing scheme funding plans?

Where appropriate, the Pensions Regulator expects professional independent analysis and advice to be sought in relation to the employer covenant, investment and funding strands to support decision-making and expects you to be in a position to be able to explain decisions based on the interplay of the different information and advice strands you have received.

How can we reduce the prospect of a discretionary decision being successfully challenged?

Established legal principles require you to take account of all relevant factors and ignore all irrelevant ones and not arrive at a perverse decision. Powers should be used only for their proper purpose and not to achieve some other purpose. You should take advice on technical or legal matters where appropriate. You will usually be entitled to rely on that advice, provided it is properly sought and given and you have no reason to believe that it might be incorrect.