The Occupational Pensions Regulatory Authority (OPRA) in the UK has announced it will continue to regulate pension schemes on the basis of the current minimum funding requirement (MFR) rules.
This announcement follows the Chancellor of the Exchequer's budget speech in March 2001, which announced the government's intention to abolish the MFR.
The government intends to replace the MFR with a long-term scheme specific funding standard in conjunction with a number of measures to protect scheme members' interests, such as the introduction of a statutory duty of care on the scheme actuary.
OPRA has published guidance on how the MFR regulations will be handled in the period before a new funding test is introduced.
OPRA’s guidance, available through www.opra.gov.uk, looks at issues arising from the impending abolition of the MFR and OPRA’s experience in this area since the MFR came into force over four years ago.
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