A key objective for trustees of defined benefit pension schemes is paying the promised benefits as they fall due. Your ability to fulfil this important aim will be enhanced if the employer supporting the scheme is successful.
Integrated risk management (IRM) is an approach that you can use to identify, manage and monitor risks that can affect the funding objectives for your defined benefit pension scheme.
As part of the funding approach for your defined benefit pension scheme, you should understand the current strength of the employer covenant and how it could change in the future.
You need to produce and maintain a statement of investment principles that sets out the investment strategy for your defined benefit pension scheme.
Your defined benefit pension scheme needs to meet the statutory funding objective.
If your defined benefit pension scheme doesn’t meet its statutory funding objective, you must put an appropriate recovery plan in place to return it to full funding. You must submit your recovery plan to us.