Regulator Releases Data On Experience Of Scheme Funding

The Pensions Regulator has issued its promised summary of experience so far in relation to "scheme specific" funding valuations. The summary breaks down the initial valuation data received from schemes up to 31 July 2007.

Under the new funding regime, every defined benefit scheme must meet its statutory funding objective, namely to have sufficient and appropriate assets to cover its liabilities, or "technical provisions". If, following an actuarial valuation, the scheme does not meet its statutory funding objective, the trustees must adopt a recovery plan setting out how it will be met, and over what period. Actuarial valuations and recovery plans must be submitted to the Regulator.