The Pensions Regulator should not end deficit recovery contribution holidays too soon, despite the outlook for 2021 looking stable, U.K. retirement executives warned.
A survey of 55 executives by the Pensions and Lifetime Savings Association, published Thursday, found that 81% said COVID-19 had little or no impact on the day-to-day running of their plans, up from 67% in April and 42% in March. But while plans are optimistic about the near-term, 59% of them would still support an extension of regulatory easements and flexibilities from the regulator beyond early 2021.
In March the regulator said plan sponsors can reduce or suspend deficit recovery contributions for a three-month period due to the outbreak of the coronavirus pandemic. DB plan trustees could have also suspended planned transfers of participant retirement pots to defined contribution or other arrangements for up to three months. In June, the regulator updated its guidance, stating that employers may continue to seek to delay deficit contributions but the trustees were required to resume reporting to the regulator about any suspended, reduced or missed contributions.
The PLSA survey found that 91% of executives including all multiemployer plan executives — known as master trusts — and local authority fund executives said that they are running their plans smoothly in the current economic environment.