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Scheme specific funding requirement

C

Cirlu

Member
According to the Assignment QAs, scheme specific funding requires assets to be taken at maket value. I didn't pick this up in the notes. I know that according to GN9, for solvency purposes, assets are taken at market value but thought that the ongoing valuation method was left open to actuarial judgement as long as there is consistency between valuing assets & liabilities.
 
I agree the requirement to use a market related approach to valuing the assets may not be clearly specified in the Scheme Specific Funding Requirement legislation, or the notes. However, I think the guidance, and certainly TPR's funding trigger points, mean that this is the only sensible approach to take.
 
The legislation is specific on this. The Occcupational Pension Schemes (Scheme Funding) Regulations direct that the assets to be used in relation to a Pensions Act 2004 Part 3 valuation (i.e. under the scheme specific funding legislation), are those assets attributed to the scheme in the accounts. No judgement required on this one - actuarial or otherwise.
 
Thanks for picking this up exam fatigued - I'd been trying to find the relevant wording in the legislation but without success!
 
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