Actuarial Certificate of Deficit Reductions

Cymraeg

The Actuarial Certificate of Deficit-Reduction Contributions

The Board will again recognise deficit-reduction contributions paid into the scheme between valuations which have served to reduce the section 179 deficit.

Deficit-reduction contributions are defined as total contributions (with no adjustment being made for investment returns) less:

The cost of accrual of scheme benefits, subject to the adjustments described in section 4.1 of the section 179 guidance (measured using section 179 valuation assumptions)
Scheme expenses incurred between valuations
The cost of augmentations granted since the previous valuation
Benefits paid out of the scheme

As noted above in relation to contingent assets, details of how the Board will treat deficit reduction contributions for the purposes of the pension protection levy for 2009/10 are set out in the Board’s determination under section 175(5) of the Pensions Act 2004 which was published on 20 November 2008.

The contents of the Actuarial certificate of deficit-reduction contributions have been incorporated into the draft determination as Annex B, to support certification via Exchange.

Guidance on the completion of the Actuarial Certificate of Deficit-Reduction Contributions can also now be found in Annex B of the 2009/10 determination. Annex B replaces the previous guidance for submitting an actuarial certificate of deficit-reduction contributions issued in February 2008.