Social Security Act 1986

16 Actuarial tables

(1) Regulations prescribing actuarial tables for the purposes of any of the provisions to which this section applies—

(a) shall be made only after consultation with the Government Actuary; and

(b) shall not be made unless a draft of them has been laid before Parliament and approved by a resolution of each House.

(2) This section applies—

(a) to sections 44, 44ZA, 44A and 45 of the [1975 c. 60.] Social Security Pensions Act 1975 ; and

(b) to section 5 above.

(3) The tables—

(a) shall embody whatever appears to the Secretary of State to be the best practical estimate of the average cost, expressed in actuarial terms and relative to a given period, of making such provision as is mentioned in section 44(5)(a) or (b), 44ZA(9)(b), 44A(3) or 45(2) of the Social Security Pensions Act 1975 or in section 5(10)(b) above, as the case may be; and

(b) shall assume for any period an average yield on investments which is not less than the average increase during that period in the general level of earnings obtaining in Great Britain,

but the regulations may provide for them to be adjusted according to whatever is from time to time the actual yield on prescribed investments or the average yield, as shown in prescribed published indices, on prescribed classes of investments.

(4) The Secretary of State may from time to time, and shall when required by subsection (6) below, lay before each House of Parliament—

(a) a report by the Government Actuary on any changes in the factors affecting any of the actuarial tables prescribed for the purposes of any of the provisions to which this section applies (including changes affecting adjustments under the regulations); and

(b) a report by the Secretary of State stating whether he considers that the regulations ought to be altered in view of the Government Actuary's report and, if so, what alterations he proposes.

(5) The changes referred to in subsection (4) (a) above are, in the case of the first report under that paragraph, changes since the last report under section 46(3)(a) of the [1975 c. 60.] Social Security Pensions Act 1975 and, in the case of a subsequent report under this section, changes since the preparation of the last such report.

(6) The Secretary of State shall lay the first report under this section not later than 6th April 1987 and subsequent reports at intervals of not more than five years.

(7) If in a report under this section the Secretary of State proposes alterations in the regulations, he shall prepare and lay before each House of Parliament with the report draft regulations giving effect to the regulations and to be in force—

(a) from the beginning of such tax year as may be specified in the regulations not earlier than the second tax year after that in which the regulations are made ; or

(b) where it appears to him to be expedient for reasons of urgency, an earlier date not earlier than the date on which the regulations are made.

(8) If the draft regulations are approved by resolution of each House, the Secretary of State shall make the regulations in the form of the draft.