Actuarial funding valuations
Produced in partnership with Alison Fleming of PwC and Stuart Foreman of Capita
Actuarial funding valuations

The following Pensions guidance note Produced in partnership with Alison Fleming of PwC and Stuart Foreman of Capita provides comprehensive and up to date legal information covering:

  • Actuarial funding valuations
  • Statutory requirement for actuarial funding valuations
  • Outline of requirements
  • Timing of actuarial funding valuations
  • Years when no full valuation is required
  • The importance of employer covenant
  • Setting the valuation assumptions
  • Power to set the employer contribution rate
  • Recovery plan
  • Valuation documentation
  • more

FORTHCOMING DEVELOPMENT: Following the publication of the White Paper ‘Protecting defined benefit pension schemes’ in March 2018, the Pensions Regulator (TPR) worked on the design of clearer funding standards (eg in respect of the prudence of technical provisions, suitable long term objectives and the appropriateness of recovery plans) for defined benefit (DB) schemes. Furthermore, the Pension Schemes Bill 2020 introduced to the House of Lords on 7 January 2020 will require DB trustees to have a ‘funding and investment strategy’ for the purpose of ensuring scheme benefits can be paid over the long term. That strategy is to be set out in a ‘statement of strategy’ signed by the chair, which will cover other matters including 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. Furthermore, the Bill will enable regulations to set out the matters to be taken into account, or the principles to be followed, in determining whether a recovery plan is appropriate.

The introduction of the Pension Schemes Bill 2020 in January 2020 was followed on 3 March 2020 by TPR’s publication of the first stage of its consultation on a revised defined benefit (DB) funding code