Valuation of assets and liabilities

Excluded assets6

1

There shall be excluded from the value of the scheme assets—

a

any resources invested (or treated as invested by or under Article 40) in contravention of Article 40(1) (restriction on employer-related investments);

b

any amounts treated as a debt due to the trustees or managers under Article 59(2), 60(5) or 75(1) which are unlikely to be recovered without disproportionate cost or within a reasonable time;

c

any increase in scheme assets attributable to an increase in the value of the scheme’s assets being secured by a method specified in Schedule 4 following a serious shortfall valuation.

2

At any time after the transitional period, there shall also be excluded the excess of the value mentioned in paragraph (3) over the amount mentioned in paragraph (4).

3

The value referred to in paragraph (2) is the aggregate value of employer-related invest ments, as defined in Article 40(2), the holding of which—

a

contravenes Article 40(1), or

b

would do so apart from any provision enabling them to be held only until a specified time or by virtue of their having fallen within regulation 5(2)(d) of the Occupa tional Pension Schemes (Investment of Scheme’s Resources) Regulations (Northern Ireland) 19929.

4

The amount referred to in paragraph (2) is 5 per cent. of the aggregate value of the scheme’s assets (excluding anything falling within paragraph (1) or (3)(b)).