The Occupational Pension Schemes (Employer Debt) Regulations 2005

Regulation 5

SCHEDULE 1 Form of Actuary’s Certificate

• Actuarial Certificate Given for the Purposes of Regulation 5 of the Occupational Pension Schemes (Employer Debt) Regulations 2005

• Name of scheme

• Date as at which valuation is made

• 1 Comparison of value of scheme assets with amount of scheme liabilities

• In my opinion, at the above date the value of the assets of the scheme was less than the amount of the liabilities of the scheme.

• The value of the assets of the scheme was

• The amount of the liabilities was

• The amount of the difference was

• 2 Valuation principles

• The scheme’s assets and liabilities are valued in accordance with section 75(5) of the Pensions Act 1995, the Occupational Pension Schemes (Employer Debt) Regulations 2005 and the guidelines on winding up and scheme asset deficiency (GN19) and on minimum funding requirement (GN27) prepared and published by the Institute of Actuaries and the Faculty of Actuaries (so far as those guidelines are applicable).

• Signature Date

• Name Qualification

• Address Name of employer (if applicable)

• Note:

• The valuation of the amount of the liabilities of the scheme may not reflect the actual cost of securing those liabilities by the purchase of annuities if the scheme were to have been wound up on the date as at which the valuation is made.

Regulation 18

SCHEDULE 2 Consequential Amendments

The MFR Regulations

1.—(1) The MFR Regulations are amended as follows.

(2) In regulation 2(2)–

(a) for “relevant insolvency event” substitute “relevant event”; and

(b) for “same meaning as in section 75” substitute “meaning given in section 75(6A)”.

(3) In regulation 13 (duty to obtain minimum funding valuations: section 75 debts in multi-employer schemes)—

(a) in paragraph (1) for “section 75(1)” substitute “section 75(2) or (4)”; and

(b) in paragraph (3) for “has the same meaning as in section 75(3)” substitute “means the time as at which the value of the assets of a scheme and the amount of its liabilities are to be determined, calculated and verified for the purposes of section 75”.

(4) In regulation 19 (records) in paragraph (3)(c) for “section 75(1)” substitute “section 75(2) or (4)”.

(5) In Schedule 4 (methods of securing shortfall in cases of serious underprovision)—

(a) in paragraph 1(1) for the definition of “section 75(1) shortfall” substitute—

““section 75 shortfall”, in relation to a scheme, means so much of the amount treated by section 75(2) or (4) as a debt due from the employer to the trustees or managers at the applicable time (as defined in regulation 2(1) of the Occupational Pension Schemes (Employer Debt) Regulations 2005), as is attributable to the value of the scheme assets falling short of the amount of the scheme liabilities by more than 10 per cent;”

(b) for “section 75(1) shortfall”, wherever else it occurs, substitute “section 75 shortfall”;

(c) in paragraphs 1(2), 2(2)(a), 3(3)(a), 4(2)(b) and (4) for “relevant insolvency event” substitute “relevant event”.

The Occupational Pension Schemes (Winding Up) Regulations 1996

2.  In regulation 10(2) of the Occupational Pension Schemes Winding Up Regulations 1996 for “relevant insolvency event” and “subsection (4) of section 75 (definition of relevant insolvency events)” substitute “relevant event” and “subsection (6A) of section 75 (definition of relevant events)” respectively.

The Occupational Pension Schemes (Investment) Regulations 1996

3.  In regulation 6 of the Occupational Pension Schemes (Investment) Regulations 1996(1) (investments to which restrictions do not apply) in paragraph (7)(c) for “section 75(1)” substitute “section 75(2) or (4)”.

(1)

S.I. 1996/3127.