The Pensions Regulator

DB specific FAQsExchange

DB specific FAQs

We don't understand what financial information about our scheme we need to supply

Should we base our response to the FRS17/IAS19 liabilities question on the scheme's principal employer?

What are the different types of multi-employer schemes?

What does the term 'weighted' mean regarding the average age of scheme members?

 

We don't understand what financial information about our scheme we need to supply

If your scheme is defined benefit in nature, you'll need to have the following to hand:

• Market value assets. These can be found in your annual scheme accounts and are held by the scheme's trustee on behalf of its members. The scheme's most recent actuarial valuation is required when completing both the minimum funding requirement (MFR) and the section 179 related questions.
• A buy out valuation is a breakdown which determines how a scheme's trustee has insured a scheme member's liabilities and annuities in either the individual member's name, or in the name of the trustee on behalf of that member, when reaching the end of pensionable service within that scheme in lieu of entitlement from the main benefit structure of the scheme.

If your scheme is defined contribution in nature you'll need to have the following to hand:

• The scheme's most recent auditor's statement of contributions. This will be a major source of information in completing the scheme return.
• Market value assets. These are all assets held by the scheme and should be documented in the scheme annual accounts.

Should we base our response to the FRS17/IAS19 liabilities question on the scheme's principal employer?

Yes, your response to this question should be based on the scheme's principal employer's calculations. Please note, FRS17 liabilities can be found in the sponsoring employer's latest published accounts.

What are the different types of multi-employer schemes?

There are two broad types of multi-employer schemes: non-segregated schemes and segregated/sectionalised schemes.

There are three categories of non-segregated multi-employer schemes identified in paragraphs 74 and 75 of the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 or Regulations 74 and 75 of the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations (Northern Ireland) 2005.

These categories are:

• non-segregated schemes with a requirement to segregate on cessation of participation of an employer;
• non-segregated schemes with discretion to segregate on cessation of participation of an employer; and
• non-segregated schemes with neither a requirement nor discretion to segregate on cessation of participation of an employer.

There are similarly also three categories of multi-employer sections of a segregated scheme.

What does the term 'weighted' mean regarding the average age of scheme members?

Defined benefit schemes should take into consideration the emphasis placed on the breakdown of their membership that the MFR liabilities or section 179 lean towards. So 'weighted' labels the importance of liabilities associated with the members and the categories they fall into (active, deferred or pensioner).