22 June 2006
The Pensions Regulator has issued additional guidance for
pension scheme trustees and their professional advisers on summary
funding statements.
Under the new scheme specific funding regime, trustees must
issue regular summary funding statements to all scheme members and
beneficiaries providing them with information about the funding of
their scheme.
The regulator's guidance clarifies the need for summary funding
statements issued before a scheme has had its first actuarial
valuation under the new funding regime to include an explanation of
any changes to the scheme's funding position.
Trustees are not required to obtain additional specific
actuarial calculations in order to identify whether the funding
position has changed since the last valuation under the previous
MFR regime. Only where trustees are aware of changes in funding
because of actuarial information obtained for some other scheme
purpose need they include an explanation of the changes in the
summary funding statement.
Initial summary funding statements must be issued before 22
September 2006, followed by updated statements in each subsequent
year prior to a scheme's first valuation under the new regime.
The guidance also makes clear that trustees of hybrid schemes
need not issue summary funding statements to members who have
solely money purchase benefits.
The additional guidance Summary funding statements is available
on the Pension Regulator's website.
The regulator's Code of Practice on funding defined benefits is
also available. The code provides practical guidance for trustees
in complying with the new funding requirements, including those
applicable to summary funding statements.
