Part 5: Further provision relating to pension schemes Scheme funding Schedule 10: Funding of defined benefit schemes 221B Statement of strategy
Paragraph 2 also inserts new section 221B into the Pensions Act 2004.
	Subsection (1) of section 221B requires trustees to prepare a written statement, defined as a "statement of strategy", setting out the scheme’s funding and investment strategy itself and supplementary matters. In the White Paper this was referred to as a "DB Chair’s Statement".
	Subsection (2) sets out the supplementary matters to be included in the statement. These are:
	the trustees’ assessment of whether the funding and investment strategy is being successfully implemented, or any remedial action they intend to take, to get the strategy back on course;
	the key risks and mitigations for implementation; reflections on any key decisions trustees have taken and lessons learned; and other prescribed matters, which may include a view of the sponsoring employer.
	Subsection (3) does three things:
	defines the written statement required under subsection (1) of section 221B as a ‘statement of strategy’;
	makes clear Part 1 of the statement of strategy is to cover the funding and investment strategy; and
	Part 2 of the same statement is to cover the supplementary matters.
	Subsection (4) requires trustees or managers to regularly review and where necessary revise Part 2 of the statement of strategy and on occasions which may be prescribed in regulations.
	Subsection (5) requires trustees or managers to consult the employer when preparing the supplementary matters to be included in the statement of strategy.
	Subsection (6) requires the chair of the trustees to sign the statement of strategy on behalf of the scheme trustee board. Regulations may require a person to meet prescribed conditions to be appointed chair.
	Subsection (7) requires the trustee board to appoint a Chair if they do not already have one.
	Subsection (8) provides that regulations may be made to:
	require the trustees or managers to take account of prescribed matters and follow prescribed principles when preparing Part 2 of the statement of strategy;
	ensure sufficient detail is included in Part 2 of the statement for example to explain trustees’ decision making and to support the Pensions Regulator in their regulatory enforcement;
	require trustees to provide the information required in the statement in a particular form i.e. a template;
	set out when, and the occasions on which trustees must send the statement to the Regulator – for example to ensure the statement is submitted every three years with the actuarial valuation, or to ensure a revised statement is submitted following a direction from the Regulator to the scheme to revise their funding and investment strategy.
	Subsection (9) provides that trustees who do not comply with these requirements can be subject to the section 10 of the Pensions Act 1995 civil penalty where they fail to take all reasonable steps to secure compliance.