Member

The new arrangements as a whole introduce clearer funding standards, with an emphasis on long-term planning. There is a range of levers out there, but the underpinning principle of sustainable risk is crucial. My noble friend Lady Drake may be interested to reflect on this. The new arrangements ensure that investment risk is considered alongside an assessment of whether that risk is supportable by having sufficient time for asset values to recover and a sponsor able to pay more in future if necessary. Along with the journey plan to low dependency by the time a scheme reaches significant maturity, that will give us some really important levers to protect members’ benefits.