TPR has updated its “frequently asked questions” in the scheme funding section of its website, including the following issues:
- the interaction of Part 3 of the Pensions Act 2004 with scheme rules in relation to the requirement for triennial valuations;
- whether trustees can change a valuation renewal date;
- the valuation of insurance policies for the purposes of Part 3;
- whether trustees should include reasons for assumptions in the scheme’s statement of investment principles;
- assumptions and method in relation to the future service contribution rate;
- whether trustees can select assumptions other than the discount rate underlying the technical provisions when assessing the contribution rate for future benefit accrual;
- when the employer’s agreement should be sought when setting the contribution rate;
- how an actuary should approach certification of schedules of contributions, where he has set the rate of contributions;
- whether the actuary should be expected to certify the prudence of assumptions; and
- whether a payment of surplus to an employer can ever be in the interests of members.
View TPR’s FAQs.