Section 221A — Pensions Act 2004: Funding and investment strategy

Funding and investment strategy 221A 1 The trustees or managers must determine, and from time to time review and if necessary revise, a strategy for ensuring that pensions and other benefits under the scheme can be provided over the long term. This is referred to in this Part as a “ funding and investment strategy ”.

2 The strategy must, in particular, specify—

a the funding level the trustees or managers intend the scheme to have achieved as at the relevant date or relevant dates, and b the investments the trustees or managers intend the scheme to hold on the relevant date or relevant dates.

3 In subsection (2)—

a “ funding level ” means the ratio of the scheme's assets to its liabilities;

b “ relevant date ” means a date determined in accordance with regulations.

4 Provision may be made by regulations—

a requiring the trustees or managers of a scheme, in determining or revising a funding and investment strategy, to take into account prescribed matters and follow prescribed principles;

b as to the level of detail required in a funding and investment strategy;

c as to the period within which a funding and investment strategy must be determined;

d requiring a funding and investment strategy to be reviewed, and if necessary revised, at such intervals and on such occasions as may be prescribed.

5 The provision that may be made by virtue of subsection (4)(a) includes provision requiring the trustees or managers, in specifying a funding level for the purposes of subsection (2)(a), to adopt prescribed actuarial methods or assumptions.

6 Where any requirement of this section is not complied with, section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or manager who has failed to take all reasonable steps to secure compliance.