PART 1Collective money purchase benefits
Valuation and benefit adjustment
I1I218Calculation of benefits
1
A collective money purchase scheme must have rules about how the rate or amount of benefits provided under the scheme is to be determined.
2
The rules must include—
a
rules for determining the available assets of the scheme and their value,
b
rules for determining the required amount, and
c
rules about how the rate or amount of benefits provided under the scheme is to be adjusted from time to time, including rules about when adjustments are to take effect.
3
In this section “the available assets of the scheme” and “the required amount” have the meaning given in section 2(2).
4
The Secretary of State may by regulations make provision about the matters mentioned in subsections (1) and (2), including provision about the methods and assumptions to be used.
5
Regulations under subsection (4) making provision about the determination of the required amount may, among other things, make provision about—
a
how past or proposed adjustments to the rate or amount of benefits provided under the scheme are to be treated;
b
assumptions to be made about future adjustments to the rate or amount of such benefits.
6
Regulations under subsection (4) may, among other things—
a
provide for alternative methods and assumptions;
b
require or enable the trustees to decide which methods and assumptions are to be used;
c
specify matters that the trustees must take into account, or principles they must follow, in making such decisions.
7
Regulations under subsection (4)—
a
may make provision applying in relation to rights under the scheme that have already accrued;
b
override the rules of the scheme to the extent that the rules conflict with the regulations.
8
Regulations under subsection (4) are subject to affirmative resolution procedure.