The Pensions Regulator (TPR) has urged trustees and employers to 'work together' in order to protect savers and manage the immediate effects of the coronavirus (COVID-19) pandemic.
In its latest Annual Funding Statement (AFS), the Regulator outlined how defined benefit (DB) pension schemes should approach upcoming scheme valuations. The TPR warned that many schemes have been impacted by COVID-19 and has issued guidance to support both trustees and employers.
The TPR also stated that March and April 2020 valuations will be 'challenging', with many trustees not having enough information to form a reliable view on long-term future returns from their scheme's investments. It said that trustees may wish to consider delaying decisions until more clarity emerges.
'What is clear is that COVID-19 is testing employers and trustees like never before and it is vital that they work together collaboratively,' said Charles Counsell, Chief Executive of the TPR.
'We are clear that the best support for a pension scheme is a strong employer and so we are here to support both groups in our role to ensure savers' retirements are protected.
'It is vitally important for all schemes to follow our AFS guidance, and the extra COVID-19 guidance we have issued and will regularly update, to strengthen their position for the tough times which lie ahead.'
More information can be found here.