The Pensions Board has recently published its long awaited revised funding rules for defined benefit (DB) schemes. The key aspects of the new rules are as follows:
- DB schemes will normally be allowed until 2023 to clear existing deficits
- A risk reserve will be required with effect from 1 January 2016
- Schemes holding sovereign annuities or sovereign bonds will be allowed credit for these in their funding standard calculations
The Pensions Board has also reintroduced deadlines for the submission of DB funding proposals, the first of which is 31 December 2012.
Contributed by Mary Greaney, Lorna Osborne.
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