TPR Small Scheme Strategy

During 2017, TPR ran a number of ‘roundtable’ sessions across the UK, outlining its proposed small DB scheme strategy. This strategy will be rolled out in 2018, commencing for schemes with March 2018 valuation dates.

100 schemes have been identified by TPR as ones that it has concerns about. Of these schemes half will be contacted directly, and the other half monitored. Those contacted directly will have the following matters to consider:

• TPR will give a view on covenant strength
• Specific scheme issues will be highlighted
• Questionnaire will be included for completion

Our view

Rather than concentrating entirely on large scheme issues, TPR are clearly allocating resources to small schemes it feels require increased attention and focus.

Central to this, and the start point for any meaningful understanding of the risks in any particular scheme, will be establishing what trustees are doing about covenant assessment. TPR will be seeking reassurance that trustees have fulfilled their duties in assessing the covenant as the basis of the valuation process and setting an appropriate investment strategy.

PCS is ideally placed to support smaller schemes with covenant advisory support. Our market proposition is one which will directly meet the needs of smaller schemes for the following reasons:

• Our senior staff have experience not only of dealing with a wide range of regulatory matters, but also more importantly of working at TPR.
• Our team has considerable experience gained at market leading independent covenant advisory firms.
• Our cost-effective fee structures mean that quality advice is within reach of smaller schemes that may previously have been sensitive to covenant advisory market prices.