Scheme Specific Funding
From ACT Wiki
Pensions funding - defined benefit schemes - UK.
(SSF).
Scheme specific funding is the funding requirement regime for UK defined benefit pension schemes.
- Key elements of Scheme Specific Funding
- "The key elements of the scheme-specific funding regime... are that:
- The scheme specific funding (SSF) regime requires the majority of DB schemes to complete an actuarial valuation at least every 3 years.
- Annual update reports are carried out in the intervening years.
- The actuarial valuation establishes how much the scheme’s assets are worth and how much the scheme needs in order to pay pensions as they fall due (the ‘technical provisions’ or ‘funding target’).
- The valuation reflects a particular point in time and assumes that the scheme will continue in the future.
- The SSF regime requires a scheme to be funded (have assets) to at least cover its technical provisions.
- If the trustees find the scheme to be in deficit, they must draw up a plan to address that funding gap.
- This is a recovery plan."
- Defined benefit pension scheme funding regime - UK House of Commons Library - 2020.
Scheme Specific Funding replaced the UK's previous Minimum Funding Requirement regime.
See also
- Actuarial valuation
- Defined benefit pension scheme
- Funding
- Funding level
- Recovery plan
- Statutory funding objective
- Technical provisions
- Trustee
