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The regulator's chief executive, Bill Galvin, said that while the economic environment continued to be "challenging", the majority of sponsors would be able to fulfil pensions promises without adjusting existing funding proposals. He added that struggling employers would have "greater breathing space" to address deficits over a longer period, with the changes impacting any valuation conducted within 12 months of September last year. "However", he warned, "we will draw a distinction between this group and those cases where schemes are substantially underfunded and employers are able to afford higher contributions."
National Association of Pension Funds chief executive, Joanne Segars, said it was good that the regulator would look "sympathetically" on employers, but urged the regulator to be prepared for the possibility of further QE.
"Whilst the Regulator is optimistic that the majority of pension schemes will not need to make significant increases in their contributions, it will need to stand ready to adjust its expectations if the real experience of pension schemes turns out to be far worse", she said.
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