Two modules on scheme funding for trustees of defined benefit schemes have been added to the ‘Trustee Toolkit'.
The latest additions to the Pension Regulator’s free e-learning programme cover ‘How a DB scheme works’ and ‘Funding your DB scheme’, modules covering scheme funding and investment choices for trustees of defined contribution (DC) schemes is planned for release later in the year.
‘How a DB scheme works’ aims to teach trustees how benefits accrue, how they are calculated and what trustees should consider if a scheme is in deficit. It also looks at the employer covenant and how trustees can recognise when the employer’s willingness and ability to meet pension liabilities might be at risk.
And the ‘Funding your scheme’ module looks at the implications of having to meet the statutory funding objective, along with different ways to measure liabilities and the funding position of the scheme.
The Regulator says the modules are interactive with the learner having to decide on the assumptions they will use to measure the funding position of the scheme, and has the opportunity to play with interactive graphics to see what effect changing the assumptions has.
There are also plans for a further funding module, specifically for trustees of DB schemes, to be added to the toolkit later in the year which will focus more on the technical aspects, such as the methods for calculating technical provisions, designing and proposing a recovery plan and strategic asset allocation.
Terry Clayworth, regulated community learning manager, says these modules will enable trustees to understand fully how calculations are made and how they should set about selecting assumptions and methods for those calculations.
He adds: “It will give them confidence when approaching their new responsibilities under the Pensions Act 2004. As the scenarios have been designed to help trustees participate in similar decisions to those they will have to face in their own schemes.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected]IFAonline
Partner Insight Video: Advisers have had to adapt to the changing investment landscape.
Investment trust savings scheme