Minimum funding requirement
56.—(1) Every occupational pension scheme to which this Article applies is subject to a requirement (referred to in this Part as “the minimum funding requirement”) that the value of the assets of the scheme is not less than the amount of the liabilities of the scheme.
(2) This Article applies to an occupational pension scheme other than—
(a)a money purchase scheme, or
(b)a scheme falling within a prescribed class or description.
(3) For the purposes of this Article and Articles 57 to 61, the liabilities and assets to be taken into account, and their amount or value, shall be determined, calculated and verified by a prescribed person and in the prescribed manner.
(4) In calculating the value of any liabilities for those purposes, a provision of the scheme which limits the amount of its liabilities by reference to the amount of its assets is to be disregarded.
(5) In Articles 57 to 61, in relation to any occupational pension scheme to which this Article applies—
(a)the amount of the liabilities referred to in paragraph (1) is referred to as “the amount of the scheme liabilities”,
(b)the value of the assets referred to in that paragraph is referred as “the value of the scheme assets”.
(c)“an actuarial valuation” means a written valuation prepared and signed by the actuary of the scheme of the assets and liabilities referred to in paragraph (1), and
(d)the “effective date” of an actuarial valuation is the date by reference to which the assets and liabilities are valued.