PR unveils DB contingent assets criteria

The 14 pages of guidance explain how contingent assets - such as letters of credit from a bank and parent company guarantees - can be used to either support the calculation of technical provisions, or to underpin a recovery plan for a scheme deficit. However, the Pensions Regulator points out because the whole funding strategy relies on being scheme-specific, and as contingent assets and the way in which may be used could vary from scheme to scheme, the guidance only covers the general principles trustees should consider when including them in a scheme funding strategy. The Pensions Reg...