According to its press release, the regulator’s guidance clarifies the need for trustees and advisors to include any changes to a scheme’s funding position on the summary statement issued before a scheme has had its first actuarial valuation under the new regime. The new scheme-specific funding regime requires trustees to issue regular summary funding statements to all scheme participants and beneficiaries.
Trustees are not required to obtain additional actuarial valuations in order to report whether the scheme’s funding position has changed since the last valuation under the previous regime, the release said. Only trustees who are made aware of changes by actuarial information obtained for some other scheme purpose need to include an explanation of the funding changes in their first summary funding statement.
The guidance also says that trustees of hybrid schemes do not need to issue funding summary statements to participants who only have money purchase benefits.
Initial summary funding statements must be issued by September 22.
The additional guidance is here .
The regulator’s Code of Practice on funding defined benefit schemes can also be found on its Web site at www.thepensionregulator.gov.uk/schemefunding .
The Pension Regulator was established last year to strengthen the funding of defined benefit plans, improve the governance of work-based pension plans, and reduce the risks to members of defined contribution pension plans (See UK Pensions Regulator Sets Three-Year Strategy ).
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