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Regulatory guidance

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Notes for timings for scheme funding Part 3 actuarial valuations

effective date An actuarial valuation or report considers the funding of a scheme as ata particular date (the effective date). This date is earlier than the date on which the calculations are done. The effective date of a scheme's first Part 3 valuation cannot be before 22.09.2005, and the effective date of a scheme's last MFR valuation cannot be after 29.12.2005.  See 'Part 3 report' for more details on its effective date.
MFR The minimum funding requirement.
MFR multi-employer event When one or more employers (but not all of them) participating in a scheme either stops participating or goes into liquidation in circumstances which trigger the requirement to obtain an out-of-sequence MFR valuation.
MFR valuation A comparison by the actuary of the value placed on the scheme assets with the liabilities using the method and assumptions used in the MFR legislation and the actuarial guidance note GN27.
negative MFR certificate A certificate by the actuary to the effect that an MFR schedule of contributions is no longer adequate in circumstances which trigger the requirement to obtain an out-of-sequence MFR valuation.
Part 3 report

The actuary's estimate of changes to the funding position of the scheme since the last Part 3 valuation.

The trustees must obtain any Part 3 report within 12 months of its chosen effective date. The effective date of the first Part 3 report must not be more than 1 year after the effective date of the last Part 3 valuation. The effective date of any subsequent Part 3 report must not be more than 1 year after the effective date of the last Part 3 report.

Part 3 valuation An actuarial valuation under the new scheme funding legislation valuing the scheme's assets, calculating its technical provisions, and assessing future contribution requirements.
recovery plan The plan setting out the steps to be taken to eliminate any shortfall identified in the Part 3 valuation, including the period.
regular MFR valuation An MFR valuation obtained pursuant to section 57(1)(a) of the Pensions Act 1995.
statement of funding principles A statement which contains the trustees' decisions as to the method and assumptions to be used in calculating the technical provisions as well as the decisions relating to the elimination of any shortfall.
schedule of contributions The document put in place following an actuarial valuation, setting out the contributions payable to the scheme and the date by when they should be paid.