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Occupational Pensions

Volume 485: debated on Wednesday 17 December 2008

To ask the Secretary of State for Work and Pensions what discussions he has had with the Pensions Regulator on companies with final salary pension schemes making up shortfalls in assets following the credit crunch. (242854)

DWP Ministers and officials have regular discussions with the Pensions Regulator to discuss the regulatory framework, including the ability of companies to make up final salary pension schemes’ shortfalls.

The Pensions Regulator published its second analytical document on scheme funding and recovery plans on 11 December 2008. The report is available at the Pensions Regulator’s website.

The regulator’s analysis of recovery plans shows positive trends in addressing pension deficits but recognises that there are challenges ahead. Reasonable affordability remains the key and the regulator has issued statements on 24 October and 11 December reaffirming the flexibility of the scheme funding regime in relation to current market conditions.