Scheme funding: Is it going to be easier second time around?

The UK funding regime for occupational defined benefit schemes was revised in 2005 and pension schemes are about to face their second triennial valuation under this regime. This paper examines the main economic and other changes that have taken place over this period, and their impact on funding valuations. It concludes that the present economic climate is likely to give rise to significant differences in viewpoints between employers and trustees as to appropriate funding assumptions for the calculation of liabilities and contribution levels, and highlights some of the likely outcomes.