Right time to amend MFR, says pension fund survey
UK – The Government’s proposed reform to the minimum funding requirement (MFR) couldn’t come at a better time, according to a survey of pension fund scheme compliance and standards by Jardine Lloyd Thompson (JLT).
The survey, which only had a 7% response rate with 134 of 2,050 pension funds taking part, finds that 71% of schemes has contemplated making changes to scheme structure as a result of MFR, with small schemes (up to 1,000 active members) coming off worse in terms of costs.
Only 3% of larger schemes (more than 5,000 active members) considered changing their finances, compared to 39% of small ones.
Says June McIntosh, technical director at JLT, : “The industry has been crying out for a change and the Government’s proposal is most welcome. The proposal provides a quick fix option with the extension of the deficit recovery period, whilst we are particularly pleased to see that security of member benefits will be addressed in the long-term.”