The Pensions Regulator

Code of practice 03
Funding defined benefits

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Preliminary considerations

What trustees need to establish

24. Trustees of schemes to which the scheme funding legislation applies need to establish:
    • who determines the rates of contributions under the scheme rules of the scheme and whether any conditions apply;
    • whether the scheme has fewer than 100 members;
    • whether more than one employer participates in the scheme;
    • if more than one employer participates in the scheme, whether it is divided into separate segregated sections so that Part 3 applies to each section as if it were a separate scheme;
    • who is responsible for making up funding shortfalls, whether it is solely the employer or whether the cost is shared between the employer and the active members;
    • if the cost is shared between the employer and the active members, whether it is a 'shared cost' scheme;
    • whether the scheme operates cross-border within the European Union;
    • whether the scheme is in wind-up; and
    • whether the scheme is a regulatory own funds scheme³⁷.
25. Trustees should take advice from one or more appropriate and properly appointed advisers on this or any other matter about which they are unsure.

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