The Pension Regulator’s 2014 Code of Practice sets out a new approach to scheme funding. KPMG’s Integrated Funding Framework (PDF 180 KB) provides a way for trustees and sponsors to work together, in line with this Code, helping them to reach effective funding outcomes for their defined benefit pension schemes.
The Code represents an opportunity for trustees and sponsors to refresh the way they work together and has two key messages:
i) Covenant, investment and funding should be integrated into a cohesive scheme funding strategy;
ii) Scheme cash demands should be balanced with investing in the sustainable growth of sponsors.
KPMG’s Integrated Funding Framework follows four steps designed to help trustees and sponsors have the right conversations to build an integrated funding plan which is customised to their circumstances.
Find out more about the four keys steps in our Integrated Funding Framework document (PDF 180 KB).
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.