PSI20.3.3 - Funding and Surpluses: Insured Schemes - General - Actuarial Valuations

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

[PN13.4 and 13.6]

We do not generally require the submission of actuarial reports for schemes which are wholly insured. The Life Offices employ actuaries to advise them and the premiums charged reflect that advice. But actuarial valuations are required for insured schemes operating through common trust funds (other than those which provide only lump sum death in service benefits) whose policies do not contain provisions requiring the level of contributions to be adjusted to take account of surpluses (see PSI20.5.3and PSI20.5.16). Such schemes are required by the Pension Scheme Surpluses (Valuation) Regulations 1987 to produce actuarial valuations at intervals of not more than 3½ years and to submit a copy of the valuation or certificate to this Office (see PSI20.6.11). Part 22 Section 4 explains the procedures for dealing with these cases.

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