Regulation 36 Actuarial valuations and certificatesI1

England, Wales and Scotland Not yet in force

(1)

Each administering authority must obtain—

(a)

an actuarial valuation of the assets and liabilities of each of its pension funds as at 31st March 2010 and in every third year afterwards;

(b)

a report by an actuary in respect of the valuation; and

(c)

a rates and adjustments certificate prepared by an actuary.

(2)

Each of those documents must be obtained before the first anniversary of the date (“the valuation date”) as at which the valuation is made or such later date as the Secretary of State may agree.

(3)

A report under paragraph (1)(b) must contain a statement of the demographic assumptions used in making the valuation; and the statement must show how the assumptions relate to the events which have actually occurred in relation to members of the Scheme since the last valuation.

(4)

A rates and adjustments certificate is a certificate specifying—

(a)

the common rate of employer’s contribution; and

(b)

any individual adjustments,

for each year of the period of three years beginning with 1st April in the year following that in which the valuation date falls.

(5)

The common rate of employer’s contribution is the amount which, in the actuary’s opinion, should be paid to the fund by all bodies whose employees contribute to it so as to secure its solvency, expressed as a percentage of the pay of their employees who are active members.

(6)

The actuary must have regard to—

(a)

the existing and prospective liabilities of the fund arising from circumstances common to all those bodies;

(b)

the desirability of maintaining as nearly constant a common rate as possible; and

(c)

the current version of the administering authority’s funding strategy statement mentioned in regulation 35.

(7)

An individual adjustment is any percentage or amount by which, in the actuary’s opinion, contributions at the common rate should, in the case of a particular body, be increased or reduced by reason of any circumstances peculiar to that body.

(8)

A rates and adjustments certificate must contain a statement of the assumptions on which the certificate is given as respects—

(a)

the number of members who will become entitled to payment of pensions under provisions of the Scheme; and

(b)

the amount of the liabilities arising in respect of such members,

during the period covered by the certificate.

(9)

The authority must provide the actuary preparing a valuation or a rates and adjustments certificate with the consolidated revenue account of the fund and such other information as he requests.

Annotations

Commencement

I1: Reg. 36 in force at 1.4.2008, see reg. 1(1)