DWP white paper proposals will protect DB schemes in long-term - industry agrees

A total of 67 per cent, two thirds of pension professionals, have stated that the Department for Work and Pensions’ defined benefit white paper will leave members of DB pension schemes better protected in the future.

According to a survey conducted by Aon of 140 pension professionals, two thirds noted that DB schemes will be better protected with the introduction of the white paper’s proposals including the new DB chair’s statement and additional powers for The Pensions Regulator.

Aon partner Lynda Whitney commented: “The responses to the survey on our webinar gave a clear indication that the pensions industry hopes that changes proposed in the white paper will provide better protection to schemes in the medium- and long-term.”

The survey, which questioned trustees, pension managers and finance staff with pension responsibilities also found that 44 per cent were in favour of a new funding code that is either a bit or a lot more prescriptive.

In contrast, 14 per cent wanted the funding code to be a bit loess or a lot less prescriptive. Of these, 7 per cent said they wanted the funding code to be a lot more prescriptive. This indicates a “conclusive rejection of Minimum Funding Requirement II,” Whitney said.

“I believe that trustees are looking for a little more prescription along with clearer guidelines, ranges and examples - but still retaining the ability to reflect scheme and company specific circumstances. They want more certainty about when they will get support from TPR if they reject an employer’s funding proposal.”

Furthermore, in the short-term, survey respondents noted that this year’s annual funding statement from TPR would not have a significant impact, with 57 per cent stating that the pension scheme’s share, compared to other stakeholders, would remain unchanged. However, 42 per cent were hopeful that a pension scheme could get a larger share in a 2018 valuation. A further 41 per cent thought that they would only get a slightly larger share.

Nonetheless, Whitney noted that while many of the proposals have gained industry support, many of the amendments can only be implemented with legislation, which could take up to three years.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


AI, finfluencers and the future of broking
The mortgage industry is evolving faster than ever. In this MoneyAge video, we examine the opportunities and challenges redefining the broker landscape, from AI-powered lending and changing customer expectations to housing affordability, property supply and the rise of financial influencers. Our guest from Chorley Building Society shares practical insights on what brokers need to do to stay relevant and thrive in a rapidly changing market.

Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget

NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.