Sections

The Pensions Regulator

Codes of practice

Codes of practice

Code of practice 03
Funding defined benefits

Providing information to the Pensions Regulator and reasonable periods

  1. The code gives guidance on what constitutes a reasonable period, most of which is set out in this section. The appropriate period will be dependent upon circumstances and may well be shorter or longer than the period stated in the following guidance.
Recovery plans and schedules of contributions

Preparation or revision after a valuation

  1. Where, following an actuarial valuation, trustees must prepare (or if one already exists, review and if necessary revise) a recovery plan, they must send the (newly prepared or revised) plan to the Pensions Regulator within a reasonable period.109
  2. In the same circumstances, trustees must prepare (or if it already exists, review and if necessary revise) the schedule of contributions and send the (newly prepared or revised) schedule to the Pensions Regulator within a reasonable period.110

Revisions between valuations

  1. Trustees must also send a copy of a recovery plan that has been revised other than as a result of an actuarial valuation to the Pensions Regulator within a reasonable period of its revision.111 They must provide an explanation of the reasons for the plan's revision.112
  2. They must also send the corresponding revised schedule of contributions to the Pensions Regulator within a reasonable period of its revision.

Reasonable periods for sending recovery plan and schedule of contributions

  1. The reasonable period for sending the schedule of contributions to the Pensions Regulator is ten working days from the date the schedule is certified by the actuary. Any revised or newly prepared recovery plan should be sent at the same time.

Information to accompany recovery plans

  1. Trustees must include with a recovery plan sent to the Pensions Regulator (other than one revised between valuations) a summary of the actuarial valuation ('valuation summary').113 This valuation summary should include:
    • the value placed on assets;
    • the technical provisions, separately identifying the values placed on pensions in payment, benefits in respect of deferred pensioners and benefits in respect of active members;
    • the estimated cost of securing accrued benefits with an insurance company. This estimate should show separately those costs for pensions in payment, benefits in respect of deferred pensioners and benefits in respect of active members, of securing accrued benefits with an insurance company (or alternative approach to solvency adopted by the actuary114), together with the additional costs of wind-up;
    • the method adopted for calculating the technical provisions; and
    • the principal assumptions on which the calculation of technical provisions has been based, including: investment returns; pension increases pre- and post-retirement; pensionable pay increases; the mortality assumptions made at normal pension age for each sex as at the valuation's effective date; and the mortality assumptions projected for those retiring twenty years after that date.
Actuary unable to provide certificates

Requirement

  1. Actuaries who are unable to provide the required certification of the calculation of the technical provisions115 or of the adequacy of the schedule of contributions116 must report the matter in writing to the Pensions Regulator within a reasonable period.

Reasonable period for actuary to report failure to certify

  1. The reasonable period for reporting a failure to certify is ten working days from the relevant deadline.

109 See section 226(6).
110 See section 227(7).
111 See section 226(6).
112 See regulation 8(7)(b).
Cross-border schemes
113 See regulation 8(7)(a).
114 See regulation 7(6).
115 See section 225(3).
116 See section 227(9).