Companies advised to protect pensions
There is flexibility in the funding framework for schemes and employers to meet their long-term libailities including, where necessary filling deficits over longer periods, taking acount of improvements to market conditions after valuation and use of contingent security and intra-group guarantees.
The Regulator expects that current deficit recovery contributions should be maintained in real terms.
Dividend payments may need to recognise the shareholders subordinate position to the scheme. Where cash is used in the business instead of contributions it must be shown to strengthen the employer’s ability to support the scheme.