Regulation G4 Actuarial inquiries
The Government Actuary shall make an actuarial inquiry at the end of the financial year ending with 31st March 1996 and at the end of every fifth subsequent financial year.
A report on the inquiry shall be made to the Secretary of State and shall be laid by him before each House of Parliament.
The report shall specify, for teachers entering pensionable employment on the first day of the next financial year, the percentage of the contributable salaries of those teachers to be paid, during the period beginning on 1st April next following the date of the report and ending with 31st March next following the date of the next report (“the relevant period”), so as to defray the cost of the payments of the kinds described in regulation G3(a) to (e) that are likely to be made in respect of them.
The report shall state the amount by which, at the end of the financial year, the amount of the scheme assets exceeded or fell short of that of the scheme liabilities.
The scheme assets are–
the employees' contributions receivable after the end of the financial year in respect of teachers who at the end of that year were or had been in pensionable employment;
the employers' contributions in respect of such teachers receivable after the end of the financial year, except any such supplementary contributions as are mentioned in paragraph (7);
payments that would fall to be credited under regulation G2(4)(d) and (e) to the accounts for subsequent financial years; and
the actuarial value at the end of the financial year of the notional and assumed investments described in paragraph 1 of Schedule 12.
The scheme liabilities are the payments to be made under these Regulations after the end of the financial year in respect of teachers who at the end of that year were or had been in pensionable employment, except payments attributable to service before 1st June 1922.
If the report states that the amount of the scheme liabilities exceeded that of the scheme assets, it shall specify a rate at which, during the relevant period, supplementary contributions should be paid by employers of teachers in pensionable employment so as to remove the deficiency within the period of 40 years beginning at the same time as the relevant period.
The rate shall be expressed as a percentage of the contributable salaries from time to time of persons in pensionable employment; the percentage must either be, or be a multiple of, 0.25.
In this regulation “employees' contributions” and “employers' contributions” are to be construed in accordance with regulation G2(2) and (3).