In the wake of the DWP's announcement of a further delay* in publication of the new scheme funding rules, the Pensions Regulator (TPR) has decided to plough ahead with a 90-page consultation document [PDF] issued today, describing how it plans to regulate new funding requirements for defined benefit schemes. It follows responses to earlier consultations on the DWP regulations and TPR's draft code of practice, which called for more certainty about exactly how TPR will carry out its functions and exercise its powers.

TPR's proposed approach will be specific to the circumstances of the scheme, focussed on schemes that pose the greatest risk to members' benefits, and proportionate to the ability of the employer to fund a realistic recovery plan.

The condoc is about how TPR will go about identifying schemes at risk. Key variables will be the funding objective of the scheme and the length of the recovery plan. Trigger points to attract TPR's attention will be related to PPF and FRS17 figures for typical schemes, and there will be separate triggers for schemes with recovery plans longer than 10 years. The condoc also sets out TPR's powers and when it will consider intervening. Understandably, schemes with both lower target funding levels and longer recovery plans are likely to receive closest attention.

The consultation will last for 12 weeks. A formal statement on the regulator's regulatory approach and use of powers will be published in early 2006.