We’ve responded to the Pensions Regulator’s funding code of practice consultation on Defined Benefit pensions.
In our response, we’ve proposed that the Pensions Regulator:
- Recognises the minimal risk of default from housing associations.
- Formally recognises the significantly longer covenant visibility and resilience to risk of housing associations and converts this into funding parameters appropriate to be adopted for any scheme sponsored by our members.
- Understands the significant impact on national housing (a key government priority) from requiring more money to be directed into pension schemes sooner, rather than into the housing development and building.
- Creates a “fast lane within bespoke” route for housing, which recognises the unique position of the sector as well as avoids replication of effort by both the Pensions Regulator and individual organisation.
- Has a clear approach internally to dealing with schemes sponsored by housing associations to ensure that a consistent approach is taken.
- Enables trustees to have clear guidance that schemes sponsored by our members can work within the principles agreed for housing employers, to enable consistency and efficiency for both the Regulator and individual housing associations.