The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996 No. 1536

SCHEDULE 4 METHODS OF SECURING SHORTFALL IN CASES OF SERIOUS UNDERPROVISION

Valuation of increases secured as mentioned in this Schedule

6.—(1) An increase in value secured by the method specified in paragraph 2 shall at any time be treated for the purposes of section 60 as being of an amount equal to—

(a) the amount specified in the appropriate letter of credit as the maximum amount the institution guarantees; or

(b) the section 60 shortfall at that time,

whichever is less.

(2) An increase in value secured by the method specified in paragraph 3 shall at any time be treated for the purposes of section 60 as being of an amount equal to—

(a) the amount standing to the credit of the account at that time; or

(b) the section 60 shortfall at that time,

whichever is less.

(3) An increase in value secured by the method specified in paragraph 4 shall at any time be treated for the purposes of section 60 as being of an amount equal to—

(a) the amount specified in the charge as the maximum amount to be secured by it; or

(b) the section 60 shortfall at that time,

whichever is less.