Pension scheme funding regulations delayed again

The new system of pension scheme funding has suffered its second delay and it will now come into force on December 30th 2005.

The new scheme funding requirements were originally going to take effect on September 23rd 2005 and that date was moved back to October 31st 2005.

After further talks with experts from the pensions industry about amendments to the draft regulations, resulting from the general consultation with them and some pension stakeholders, it was decided that more time was needed to iron out the details.

Minister for Pensions Reform, Stephen Timms, said: "These are important regulations affecting private sector defined benefit occupational pension schemes and this is why we wanted to make sure stakeholders had the chance to make their views known.

"We are all agreed that it is in everyone's interest that we get the regulations right, so that is why we have taken the extra time to take on board stakeholders' comments."

The regulations will apply to most defined benefit occupational pension schemes, in the private sector, and will take the place of the current minimum funding requirement.

The delay now means that schemes starting a valuation between September 22nd and December 30th 2005 will get three months, as well as the normal fifteen months usually allowed, to complete their first valuation under their new requirements.