BlackRock – Portfolio Insight


Defined benefit (DB) pension schemes face numerous chal- lenges on many fronts. The first is regulatory, with two big, interlinked initiatives potentially redefining the world of DB pensions.


The Department for Work and Pensions consultation on the draft Occupational Pension Schemes Regulations 2023 and The Pensions Regulator’s DB Funding Code of Practice look set to change a great deal for DB pensions.


These will shift the impetus of trustees at DB pension schemes to adopt a funding and investment strategy that sets out the ‘endgame’ for their scheme and how they will get there – bringing with it challenges along the way. There are also other potential consequences of which DB


schemes will need to be aware. This comes after DB schemes were caught up in the gilt volatility of September and October 2022. What are the lessons for DB schemes from such a tumultuous event? And how should schemes approach liability-driven investment, after it was the fore- front of much that occurred?


All of this raises a big question about what the path ahead should look like for DB schemes. We sat down with BlackRock to find out.


Issue 124 June 2023 | portfolio institutional | 27


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