Reporting and inter-valuation requirements by documentation type

This code of practice applies to activities related to valuations with effective dates on and after 22 September 2024. For activities related to valuations with effective dates before 22 September 2024, refer to the 2014 DB funding code (PDF, 401kb, 51 pages).

1. This section covers reporting and inter-valuation requirements by documentation type. This section includes reporting of:
   • Any failure by the trustees and employer to agree the funding and investment strategy, methods and assumptions used in calculating the technical provisions (TPs), a recovery plan, content of the statement of funding principles, or content of the schedule of contributions, in line with the scheme funding requirements contained in Part 3 of the Pensions Act 2004¹.
   • Any failure by the actuary to certify technical provisions or a schedule of contributions.
2. For the purposes of submitting any of the funding documents or reporting to us, legislation may require these be submitted to us as ‘soon as reasonably practicable’ or within a ‘reasonable period’. In both cases, we would usually expect the submission or reporting to be made within 10 working days from the relevant submission, agreement or certification deadline.
3. Unless specified, the use of ‘trustees’ refers to trustees and managers.

Reporting

Actuarial valuation

Responsible parties

4. Trustees are responsible for obtaining actuarial valuations in accordance with the legislative requirements².

Deadline

5. Where trustees have obtained an actuarial valuation, this must be received by them within 15 months of the effective date of the valuation³.
6. Alternative deadlines may apply if we make directions under section 231 of the Pensions Act 2004⁴.

Frequency and circumstances

7. The effective date of the valuation must be no more than three years from the effective date of the previous actuarial valuation, where trustees have obtained actuarial reports for the intervening years⁵. If no actuarial report is obtained for an intervening year, then the effective date will be no later than the anniversary of the effective date of the last completed actuarial valuation. Other circumstances may apply. Trustees can obtain actuarial valuations more frequently if they choose.

Reporting requirements

8. Trustees of all schemes must submit the actuarial valuation to us as soon as reasonably practicable after receiving the actuarial valuation⁶.

Funding and investment strategy

Responsible parties

9. Trustees are responsible for determining the funding and investment strategy⁷. It must be agreed with the employer except in the limited circumstances where the employer must only be consulted.

Deadline

10. The first funding and investment strategy must be determined within 15 months of the effective date of the first valuation on or after 22 September 2024⁸.
11. Alternative deadlines may apply if we make directions under section 231 of the Pensions Act 2004⁹.

Frequency and circumstances

12. The funding and investment strategy must be reviewed and if necessary revised within 15 months of the effective date of each subsequent valuation.
13. It must also be reviewed and, if necessary revised as soon as reasonably practicable after any material change in the circumstances of the scheme or its employer.

Reporting requirements

14. Trustees must set out the funding and investment strategy in Part 1 of the statement of strategy, which is submitted to us. See the following statement of strategy section for more detail.

Statement of strategy

Responsible parties

15. Trustees are responsible for the preparation of the statement of strategy, which includes both the funding and investment strategy (Part 1) as well as supplementary matters (Part 2)¹⁰. The Chair of Trustees must sign the statement of strategy on behalf of the trustees. The trustees must consult the employer when preparing or revising Part 2 of the statement of strategy.

Deadline

16. Trustees must prepare a statement of strategy as soon as reasonably practicable after determining or revising the funding and investment strategy.
17. Even if the scheme’s funding and investment strategy is not revised following its review, the trustees must review and, if necessary, revise Part 2 (supplementary matters) of the statement of strategy¹¹. Any part 2 revisions must be incorporated in a replacement statement of strategy as soon as reasonably practicable after the review of the scheme’s funding and investment strategy.
18. Alternative deadlines may apply if we make directions under section 231 of the Pensions Act 2004¹².

Frequency and circumstances

19. As set out above.

Reporting requirements

20. Trustees of all schemes must submit the statement of strategy in a form set out by us, as soon as reasonably practicable after the funding and investment strategy has been prepared or revised¹³.
21. Alternative deadlines may apply if we make directions under section 231 of the Pensions Act 2004¹⁴.

Certifying the calculation of the technical provisions

Responsible parties

22. The scheme actuary is responsible for certifying the calculation of the technical provisions¹⁵. The actuary is not responsible for choosing the methods and assumptions or certifying that they are appropriate.

Deadline

23. The scheme actuary must certify the calculation of the technical provisions as part of the actuarial valuation, within 15 months of actuarial valuation effective date.
24. Alternative deadlines may apply if we make directions under section 231 of the Pensions Act 2004¹⁶.

Frequency and circumstances

25. This will depend on the frequency of actuarial valuation.

Reporting requirements

26. Any failure to certify by 15 months of actuarial valuation effective date must be reported by the actuary to us within a reasonable period¹⁷.
27. If the trustees instruct their actuary to certify the TPs using an approach the actuary considers a clear failure to comply with Part 3 of the Pensions Act 2004¹⁸, the actuary should report that certification to us.

Actuarial reports

Responsible parties

28. Trustees are responsible for obtaining actuarial reports in accordance with the requirements.

Deadline

29. Where trustees have obtained an actuarial report, this must be received by them within 12 months of the effective date.
30. The effective date of the actuarial report must be no more than one year after the effective date of the last actuarial valuation or, if more recent, the last actuarial report.

Frequency and circumstances

31. If an actuarial valuation is not obtained every year, an actuarial report must be obtained for the intervening years. Other circumstances may apply. Trustees can obtain actuarial reports more frequently if they choose.

Reporting requirements

32. None.

Reviewing and revising statement of funding principles

Responsible parties

33. Trustees are responsible for reviewing, and if necessary revising, a written statement of funding principles.

Deadline

34. The statement of funding principles must be reviewed, and, if necessary, revised within 15 months of the effective date of the actuarial valuation¹⁹.
35. If we make directions under section 231 of the Pensions Act 2004²⁰, the statement of funding principles must be reviewed, and, if necessary, revised within a reasonable period.

Frequency and circumstances

36. This will depend on the frequency of actuarial valuation if other circumstances do not apply.

Reporting requirements

37. None.

Reviewing and revising the statement of investment principles

Responsible parties

38. Trustees are responsible for preparing, maintaining and revising a written statement of investment principles. See the module on statements of investment principles in our general code for more details.

Deadline

39. No reporting deadline. Frequency of review set out below.

Frequency and circumstances

40. The SIP must be reviewed every three years and without delay after any significant change in investment policy.

Reporting requirements

41. None.

Reviewing and revising recovery plan

Responsible parties

42. Trustees are responsible for preparing or reviewing and, if necessary, revising a recovery plan where the statutory funding objective was not met on the effective date of the actuarial valuation.

Deadline

43. Where a recovery plan is required, it must be reviewed and, if necessary, revised within 15 months of the effective date of the actuarial valuation²¹. Alternative deadlines may apply if we make directions under section 231 of the Pensions Act 2004²².

Frequency and circumstances

44. This will depend on the frequency of the actuarial valuation if other circumstances do not apply. A recovery plan can be revised and, if necessary, revised where trustees consider there are reasons that may justify a variation to the recovery plan.

Reporting requirements

45. Trustees must send a copy of any recovery plan to us within a reasonable period after it is prepared or revised. Where it is revised between valuations, it must be accompanied by an explanation of the reasons for the revision.

Reviewing and revising schedule of contributions

Responsible parties

46. Trustees must prepare, review and, if necessary, revise a schedule of contributions.

Deadline

47. Once the schedule of contributions has been prepared, it must be reviewed and, if necessary, revised within 15 months of the effective date of the actuarial valuation²³.
48. Alternative deadlines may apply if we make directions under section 231 of the Pensions Act 2004²⁴.

Frequency and circumstances

49. The schedule of contributions will be prepared within 15 months of the effective date of the first actuarial valuation. Subsequent review and, if necessary, revision depends on frequency of actuarial valuation if other circumstances do not apply.

Reporting requirements

50. Where the statutory funding objective was not met on the effective date of the last actuarial valuation, the trustees must send a copy of the schedule of contributions to us within a reasonable period after it is prepared or, as the case may be, revised. This does not apply where a schedule of contributions has been imposed by us under section 231 of the Pensions Act 2004²⁵.

Certifying the schedule of contributions

Responsible parties

51. The scheme actuary is responsible for certifying the schedule of contributions²⁶. The actuary is not responsible for certifying that the assumptions used in the schedule of contributions are appropriate.

Deadline

52. The deadline for the schedule of contributions applies.

Frequency and circumstances

53. This depends on the frequency of any review or necessary revision of the schedule of contributions.

Reporting requirements

54. Any failure to certify the schedule of contributions must be reported by the actuary to us in writing within a reasonable period of the deadline for the schedule of contributions²⁷.
55. If the trustees instruct their actuary to certify the schedule of contributions, using an approach the actuary considers a clear failure to comply with Part 3 of the Pensions Act 2004²⁸, the actuary should report that certification to us.

Reporting failure to agree

Responsible parties

56. Trustees must report a failure to agree to us²⁹.

Deadline

57. Where applicable, trustees have 15 months from the effective date of the actuarial valuation to agree with the employer the funding and investment strategy, methods and assumptions to be used in calculating the scheme’s technical provisions, statement of funding principles, recovery plan and schedule of contributions. Trustees must report any failure to agree in writing to us within a reasonable period.

Frequency and circumstances

58. A failure to agree is to be reported as required.

Reporting requirements

59. As set out above, trustees must report any failure to agree in writing to us within a reasonable period.

Intervaluation actions

Actuarial Reports

60. The purpose of the actuarial report is to provide an update of the funding position of the scheme since the last actuarial valuation. Actuarial reports prepared using a quantitative or a purely narrative approach may be acceptable to the trustees. In either case, trustees should question the actuary to understand the factors taken into account in preparing the report. While we do not expect this report to be submitted to us, we may ask to read the report in certain circumstances and expect trustees to provide this within a reasonable period.

Changes in circumstances

61. Trustees should be alert to material changes which may lead them to review and, if necessary, revise their funding approach. Where, having taken advice from the actuary, it seems to the trustees that these material changes make it unsafe to continue to rely on the chosen assumptions used in the funding documents most recently submitted, they should review and, if necessary revise, those documents (bearing in mind that they would usually need to agree a revised recovery plan with the employer). Commissioning an early actuarial valuation is one technique for doing this but may lead to unnecessary cost and delay when a revision of the existing recovery plan can achieve the necessary results. Trustees should adopt a proportionate approach when deciding how to proceed.

Summary funding statements

62. Trustees must issue a summary funding statement to all members and beneficiaries of their scheme (who are neither excluded persons nor persons whose only entitlement to benefits under the scheme is, or will be, to money purchase benefits) within a reasonable period following the date by when the trustees must receive each actuarial valuation or actuarial report. The reasonable period is three months from the date by when valuations or reports must be obtained.

Legal references

¹ Part IV of The Pensions (Northern Ireland) Order 2005

² Section 224 of the Pensions Act 2004 [Article 203 of The Pensions (Northern Ireland) Order 2005]

³ Regulation 7 of The Occupational Pension Schemes (Scheme Funding) Regulations 2005 (SI 2005/3377) [Regulation 7 of The Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005 (SR 2005/568)]

⁴ Article 210 of The Pensions (Northern Ireland) Order 2005

⁵ Section 224(1) of the Pensions Act 2004 [Article 203(1) of The Pensions (Northern Ireland) Order 2005]

⁶ Section 224(7A) of the Pensions Act 2004 [Article 203(7A) of The Pensions (Northern Ireland) Order 2005]

⁷ Section 221A(1) of the Pensions Act 2004 [Article 200A(1) of The Pensions (Northern Ireland) Order 2005]

⁸ Regulation 13 of The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024 (SI 2024/462) [Regulation 12 of The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024 (SR 2024/90)]

⁹ Article 210 of the Pensions (Northern Ireland) Order 2005 [SI 2005/255 (N.I. 1)]

¹⁰ Section 221B of the Pensions Act 2004 [Article 200B of The Pensions (Northern Ireland) Order 2005]

¹¹ Regulation 15 of The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) (SI 2024/462) Regulations 2024 (SI 2024/462) [Regulation 14 of The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024 (SR 2024/90)]

¹² Article 210 of The Pensions (Northern Ireland) Order 2005

¹³ Regulations 18 and 19 of The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024 (SI 2024/462) [Regulations 17 and 18 of The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024 (SR 2024/90)]

¹⁴ Article 210 of The Pensions (Northern Ireland) Order 2005

¹⁵ Section 225(1) of the Pensions Act 2004 [Article 204(1) of The Pensions (Northern Ireland) Order 2005]

¹⁶ Article 210 of The Pensions (Northern Ireland) Order 2005

¹⁷ Section 225(3) of the Pensions Act 2004 [Article 204(3) and (4) of The Pensions (Northern Ireland) Order 2005]

¹⁸ Part IV of The Pensions (Northern Ireland) Order 2005

¹⁹ Regulation 6(3) of The Occupational Pension Schemes (Scheme Funding) Regulations 2005 (SI 2005/3377) [Regulation 6(3) of The Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005 (SR 2005/568)]

²⁰ Article 210 of The Pensions (Northern Ireland) Order 2005

²¹ Regulation 8(1)(a) of The Occupational Pension Schemes (Scheme Funding) Regulations 2005 (SI 2005/3377) [Regulation 8(1)(a) of The Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005 (SR 2005/568)]

²² Article 210 of The Pensions (Northern Ireland) Order 2005

²³ Regulation 9 of The Occupational Pension Schemes (Scheme Funding) Regulations 2005 (SI 2005/3377) [Regulation 9 of The Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005 (SR 2005/568)]

²⁴ Article 210 of The Pensions (Northern Ireland) Order 2005

²⁵ Article 210 of The Pensions (Northern Ireland) Order 2005

²⁶ Section 227(5) of the Pensions Act 2004 [Article 206(5) of The Pensions (Northern Ireland) Order 2005]

²⁷ Section 227(9) of the Pensions Act 2004 [Article 206(9) and (10) of The Pensions (Northern Ireland) Order 2005] Part IV of The Pensions (Northern Ireland) Order 2005

²⁸ Article 210 of The Pensions (Northern Ireland) Order 2005

²⁹ Section 229(5) of the Pensions Act 2004 [Article 208(5) of The Pensions (Northern Ireland) Order 2005]