The Pensions Regulator

Summary funding statements

New funding requirements for defined benefit schemes were introduced towards the end of last year¹.

Summary funding statements (SFS) feature as part of these new requirements² and trustees must issue these to all scheme members and beneficiaries.

Trustees of schemes with at least 100 members³ must issue their scheme's initial SFS before 22 September 2006, with an updated SFS following in each subsequent year.

It is likely that the first SFS (and, for some schemes, a subsequent SFS) will need to be issued before the trustees have obtained their first actuarial valuation under the new requirements. The regulator has received a number of queries relating to the preparation of the SFS in this situation, and we're issuing this additional guidance to clarify the position for trustees.

Our Code of practice 03: Funding defined benefits provides practical guidance for trustees in complying with the new funding requirements, including those applicable to SFS⁴.

In this section...

Explanation of funding level changes
What the statement must include

Hybrid schemes
What trustees need to do

footnotes

¹ Part 3 of the Pensions Act 2004 (Scheme Funding) and the Occupational Pension Schemes (Scheme Funding) Regulations 2005 (SI 2005/3377) ('the Regulations').

² See paragraphs 2 and 3 of Schedule 3 to the Regulations.

³ See paragraph 3(3) of Schedule 3 to the Regulations.

⁴ See paragraphs 142 to 148 of the Code.