§ Dr. CableTo ask the Secretary of State for Work and Pensions what the timetable is for the phased abolition of the minimum funding requirement applicable to pension funds. [7998]
§ Mr. McCartneyOn 7 March 2001 the Government announced their proposals to replace the minimum funding requirement (MFR) with a long-term scheme specific funding standard, with additional measures to strengthen security. Our proposals offer better protection that provides more effective security for scheme members without damaging consequences for investment.
On 18 September 2001 we published "The Minimum Funding Requirement: The Next Stage of Reform". This document seeks views on the workability of draft regulations that introduce changes to the current MFR regime in advance of its replacement. The consultation period ends on 10 December 2001, and we plan to introduce these changes early next year.
Implementing our proposals to replace the MFR in full will require primary legislation, and in the meantime we are working with the pensions industry and other interested parties to develop proposals for legislation when parliamentary time becomes available.