PART IVSCHEME FUNDING
Scheme funding
The statutory funding objective201
1
Every scheme is subject to a requirement ( “the statutory funding objective”) that it must have sufficient and appropriate assets to cover its technical provisions.
2
A scheme's “technical provisions” means the amount required, on an actuarial calculation, to make provision for the scheme's liabilities.
3
For the purposes of this Part—
a
the assets to be taken into account and their value shall be determined, calculated and verified in a prescribed manner, and
b
the liabilities to be taken into account shall be determined in a prescribed manner and the scheme's technical provisions shall be calculated in accordance with any prescribed methods and assumptions.
4
Regulations may—
a
provide for alternative prescribed methods and assumptions,
b
provide that it is for the trustees or managers to determine which methods and assumptions are to be used in calculating a scheme's technical provisions, and
c
require the trustees or managers, in making their determination, to take into account prescribed matters and follow prescribed principles.
5
Any provision of the scheme rules that limits the amount of the scheme's liabilities by reference to the value of its assets shall be disregarded.