Strengthening governance readiness for trustees

Hughes Price Walker, a leading independent specialist provider of actuarial, consultancy, investment and administration services, has emphasised the need for trustees to adopt a broader perspective on scheme funding positions following the release of The Pensions Regulator’s (TPR) 2026 Annual Funding Statement (AFS) on 6 May. Helen Chivers, Actuarial Team Leader at Hughes Price Walker, remarked that “the 2026 Annual Funding Statement is very much in line with expectations.” She stressed the importance of not evaluating funding positions in isolation, noting that trustees must consider them alongside investment strategy, covenant strength, and long-term objectives due to the interdependent nature of these elements within the evolving regulatory framework.

Chivers elaborated that this reinforces the ongoing shifts outlined in the funding code, particularly the Statement of Strategy requirements, which advocate for increased integration and transparency in reporting and governance practices. She highlighted that “this is not just a reporting exercise,” urging trustees to ensure their governance structures effectively connect investment, funding, and covenant considerations. This holistic approach prevents the detrimental practice of treating these vital components as separate workstreams.

In practical terms, Chivers pointed out the necessity of testing decision-making processes to verify their cohesiveness, assessing whether governance frameworks can facilitate timely actions, and ensuring that data and reporting systems are resilient enough to handle the increased scrutiny imposed by regulators. By taking proactive measures now, Chivers affirmed that “schemes that prepare early will be in a much stronger position as regulatory expectations continue to evolve.” This call to action serves as a crucial reminder for trustees to enhance their governance readiness in a landscape marked by increasing complexities and regulatory demands.