On 18 September 2001 the Department for Work and Pensions (DWP) published the Government’s proposals for the next stage of "reform" of the Minimum Funding Requirement (MFR). Three measures are proposed:

• to extend the deficit correction periods in which scheme funding is made good;
• to remove the requirement for annual recertifications of schemes that are "fully funded"; and
• to introduce stricter conditions on voluntary wind-up.

These are interim measures to be introduced via amendments to the MFR Regulations. Full implementation of the proposed new long-term scheme-specific funding standard will have to wait until the Government sees an "opportunity" to bring in primary legislation.

The paper announces a new Consultation Panel, to be made up of representatives of interested bodies, to help ensure that the replacement for the MFR "is workable and does not have any unintended consequences". It also summarises responses to the Government’s original proposals of 7 March 2001 for replacing the MFR.