Sections

The Pensions Regulator

Regulatory guidance

Regulatory guidance

Technical queries

A scheme's first Part 3 valuation
Newly established scheme - initial contribution rate
Describing assumptions in the statement of funding principles
Assumptions in relation to the future service contribution rate
Scheme contribution rule and employer agreement
Balance of power - actuary setting the contribution rate
Recovery plan assumptions
Actuarial certification of the schedule of contributions and prudence
Part 3 valuations and audited scheme accounts
Valuation of insurance policies
Attained age funding method
Certification of a schedule of contributions: The form of the certificate
Certification of a schedule of contributions: Taking account of changes since the valuation date
Assumptions needed for Actuarial Reports
The interaction of Part 3 with scheme rules

A scheme's first Part 3 valuation

The last MFR valuation for a scheme was as at 1 November 2002, signed off on 31 October 2003. Subsequently, the renewal date for the scheme changed from 1 November to 1 January. Consequently the trustees would like the scheme's first Part 3 valuation to have an effective date of 1 January 2006. However, this will be more than three years after that of the last MFR valuation.

We note that the scheme could have obtained an MFR valuation as at 1 January 2005, and indeed, had the new requirements not been in force, it could even have obtained an MFR valuation as at 1 January 2006 as long as it was signed off prior to 31 October 2006.

Your analysis is correct. Nevertheless, although the scheme's first Part 3 valuation is strictly due as at no later than 1 November 2005, the regulator would not object to deferring this to 1 January 2006 in the circumstances described.