The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996

Failure reports

21.—(1) If it appears to the trustees or managers of a scheme that the minimum funding requirement is not met—

(a) at the end of any period—

(i) beginning with their receiving a minimum funding valuation in relation to the scheme which shows that on the effective date the minimum funding requirement is met; and

(ii) ending with their receiving the next subsequent such valuation (“the second valuation”), being a valuation which shows that on the effective date the minimum funding requirement is not met; or

(b) at the end of any period—

(i) beginning with their receiving a minimum funding valuation in relation to the scheme (“the first valuation”) which shows that on the effective date the minimum funding requirement is not met; and

(ii) ending with their receiving the next subsequent such valuation (“the second valuation”), being a valuation which shows that on the effective date—

(I) the minimum funding requirement is not met, and

(II) the amount by which the value of the scheme assets falls short of the amount of the scheme liabilities is a greater percentage of the liabilities than was shown in the first valuation,

they shall prepare a report stating the reasons for the failure to meet that requirement on the effective date of the second valuation and for the deterioration in the funding of the scheme.

(2) If the trustees or managers receive a request in writing from any such person as is mentioned in section 41(4) (which lists the persons to whom copies of documents are to be made available) for a copy of a report prepared by them under paragraph (1), they shall make a copy of the report available to him before the expiry of the period of one month beginning with the date on which they receive the request.