Interested to see the new guidance from the Pensions Regulator, stressing the importance of the flexibility in the scheme funding regime for schemes at this time.

- Three months initial relaxations are available, subject to TPR’s principles, for both scheme contributions and completing valuations.

- These easements will be important for trustees and employers trying to assess the best way forward for all. There is though a prospect that far greater time will be required before the funding of schemes can normalise.

Whilst each global challenge has its own unique characteristics, the ten year impact of the 2008 banking crisis is an example of potential long term effects.

TPR recognises this, and notes that to extend beyond the three month period, trustees will need to make an informed decision and need to be able to “fully assess the employers’ position”. 

Such covenant assessment is highlighted by TPR as being a mix of financial and legal assessment including in respect of scheme rules, contingent assets and guarantees.