The Pensions Regulator

Code of practice 03
Funding defined benefits

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Requirements at a glance

Key elements

• A statement of funding principles specific to the circumstances of each scheme setting out how the statutory funding objective will be met.
• Periodic actuarial valuations and actuarial reports.
• A schedule of contributions.
• A recovery plan where the statutory funding objective is not met.

To whom do the requirements apply?

• Trustees of most private sector funded occupational schemes providing defined benefits.

Who else needs to be involved?

• The sponsoring employer whose agreement is generally required to:
  • the statement of funding principles;
  • any recovery plan; and
  • the schedule of contributions.
• The actuary who will, following the trustees' instructions:
  • prepare the periodic actuarial valuation and intermediate actuarial reports;
  • provide advice about the statement of funding principles, the schedule of contributions, any recovery plan and any modification of the future accrual of benefits;
  • certify certain valuation calculations and the adequacy of the schedule of contributions, or advise the Pensions Regulator of failure to do so.

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