Funding documents
Defined Benefit Schemes are governed by the scheme specific funding objectives which determine that the scheme must have sufficient assets to meet its liabilities.
That is there must be sufficient money to pay the pensions when they are due. Each scheme sets out its own funding principles.
There are times when, for a number of reasons, anticipated assets do not meet anticipated liabilities. In these circumstances the Trustee is required to take steps to meet the funding objectives. It will produce control documents such as the Schedule of Contributions and have the assets and liabilities of the scheme valued.
Where there is a shortfall they will agree with the Company as to how this can be addressed in the Recovery Plan.
The Trustee is also required to inform members annually as to the Scheme's current funding position in the Summary Funding Statement.
Summary Funding Statement
The Summary Funding Statement provides the members with a summary of the financial position of the Scheme, as determined by the Scheme Actuary. The Statement is issued annually. The latest Summary Funding Statement is included in the latest newsletter.
Valuation Reports
When a defined benefit scheme is established the Scheme Actuary calculates the contributions to be paid based on assumptions about how the scheme will evolve. However, reality is invariably different and the Actuary is required to revisit these assumptions through a formal valuation every 3 years.
If you wish to view a copy please contact the administrator whose details can be found on the contacts page.
Schedule of Contributions
The Trustee is required to produce a Schedule of Contributions agreed with the Company and certified by the Scheme Actuary as being adequate to satisfy the funding objective.
Statement of Funding Principles
The Trustee is required to set out its policy for ensuring that the scheme specific funding objective is met. This statement is attached below: