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GLOSSARY

Past service reserve definition

Published by a LexisNexis Pensions expert

What does Past service reserve mean?

This generally refers to the value of a member’s benefits calculated using his completed pensionable service and actuarial assumptions that include an allowance for projected increases in the member’s salary.

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Methods of valuing DB pension liabilities and related funding concepts

THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT LIABILITIESHow defined benefit (DB) liabilities should be valued depends on:•the valuation method to be used. Common types of valuations carried out include:◦scheme-specific funding valuations as required under Part 3 of the Pensions Act 2004 (PeA 2004)◦solvency (or buy-out) valuations as required by the Occupational Pension Scheme (Scheme Funding) Regulations 2005, SI 2005/337, reg 7◦valuations as required by the PeA 2004, ss 143 and 179 (often referred to respectively as s 143 valuations and s 179 valuations)◦neutral estimates to satisfy the requirements of paragraph 6 of Technical Actuarial Standard 300 (Pensions)◦cash equivalent transfer values (CETV) as specified under the Occupational Pension Schemes (Transfer Values) Regulations 1996, SI 1996/1847, and◦IAS19 and UK GAAP valuations, and•whether the liabilities in question relate to past service or future serviceThis Practice Note explains the above valuation methods, as well as related funding concepts.Scheme-specific funding valuationUnder the scheme-specific funding regime set out in PeA 2004, Pt 3, all schemes with DB liabilities are subject to an overriding objective...

Business sales—using a pension schedule

Business sales—using a pension schedule This PN should be read in conjunction with the following precedents: • Pension schedule: acting for sellers in an asset sale EFP vol 31(1) PENSION SCHEMES [2517]–[2522] • Pension schedule: acting for buyers in an asset purchase EFP vol 31(1) PENSION SCHEMES [2512]–[2516] Note that this Practice Note assumes that the buyer acquires a business with employees of the business transferring into employment with the buyer under the operation of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE) at completion. When can a pension schedule be used on a business sale? A pension schedule may be used, in the context of a business sale, where: • immediately prior to a TUPE transfer, at least some of the employees are active members of a defined benefit (DB) occupational pension scheme operated by the seller • the DB scheme is still open to future accrual, and • the DB scheme itself is intended to remain with the seller's group after completion...

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Local government outsourcing contract—template pensions schedule

Local government outsourcing contract—template pensions schedule 1 Interpretation 1.1 The following definitions and rules of interpretation apply in this Schedule: Admission Agreement • means the admission agreement to be entered into on or around the date of the [Outsourcing Contract] between the administering authority of the LGPS and the Supplier Best Value Direction • means the Best Value Authorities (Staff Transfers) Pensions Direction 2007 Broadly Comparable Pension Scheme • a pension scheme formally certified by the Government Actuary’s Department as broadly comparable to the LGPS Customer’s Scheme • the [ [LGPS] OR [other pension scheme] currently operated by the Customer in respect of the Relevant Employees] Fair Deal Guidance • HM Treasury Fair Deal for staff pensions: Staff transfer from central government (October 2013) Onward Transfer Date • the date of transfer of Onward Transferring Employees of the Supplier pursuant to TUPE 2006 on expiry (or earlier termination) of the [Outsourcing Contract] Onward Transferring Employees • the employees of the Supplier who...

Central government outsourcing contract—template pensions schedule

Central government outsourcing contract—template pensions schedule 1 Interpretation 1.1 The following definitions and rules of interpretation apply in this Schedule: Broadly Comparable Pension Scheme • a pension scheme formally certified by the Government Actuary’s Department as broadly comparable to the relevant Public Sector Pension Scheme Customer’s Scheme • the Public Sector Pension Scheme currently operated by the Customer in respect of the Relevant Employees Fair Deal Guidance • HM Treasury Fair Deal for staff pensions—staff transfer from central government (October 2013) Onward Transfer Date • the date of transfer of Onward Transferring Employees of the Supplier pursuant to TUPE 2006 on expiry (or earlier termination) of this [Outsourcing Contract] Onward Transferring Employees • employees of the Supplier who on expiry (or earlier termination) of the [Outsourcing Contract] automatically transfer under TUPE 2006 to the Customer or another employer for the purpose of provision of the Services Public Sector Pension Scheme • the [Principal Civil Service Pension Scheme (Classic, Classic Plus, Premium or Nuvos,...

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