The Myers Report on pension fund investment has recommended that the MFR, set up after the Maxwell pensions scandal to safeguard occupational pension schemes, should be replaced. Instead, it proposes a long-term, scheme specific funding standard, supported by a new framework of "transparency and disclosure." Although it is widely agreed that the MFR was due for review, there are concerns over the timetable for the new measures. Says Gordon Pollock, worldwide partner at employee benefits consultancy, William M Mercer. "Such delays will mean continued uncertainty, and employers will find themselves in an impossible position as the MFR basis becomes increasingly out of date."
And the pensions team at Hammond Suddards Edge warns, "Pension schemes and employers now face the prospect of regulatory upheaval that will rival the 1995 Pensions Act in its scope and complexity."