The Teachers’ Pensions Regulations 2010

Actuarial review

128.—(1) The scheme actuary must from time to time, make an actuarial review on the position in relation to the account as at the date determined by the Secretary of State (“the review date”)and make a report on the review to the Secretary of State.

(2) In making a determination under paragraph (1) the Secretary of State is to secure that—

(a) the next review date is no later than 31st March 2012, and

(b) the review date for each subsequent report is no later than 4 years after the previous review date.

(3) The Secretary of State is to determine the funding methodology to be used in making the actuarial review after taking advice from the scheme actuary.

(4) The report referred to in paragraph (1) is to specify the standard contribution rate at which contributions should be paid during the period beginning and ending on days (following the date of the report) determined by the Secretary of State (“the contribution period”).

(5) The report is to state the amount by which, at the review date, the value of the scheme assets exceeded or fell short of that of the scheme liabilities.

(6) The scheme assets and the scheme liabilities shall be determined in accordance with the funding methodology specified in paragraph (3).

(7) If the report states that the value of the scheme liabilities exceeded that of the scheme assets, it is to specify a rate at which, during the contribution period, supplementary contributions should be paid so as to remove the deficiency within the period of 15 years beginning on the first day of the contribution period.

(8) If the report states that the value of the scheme assets exceeded that of the scheme liabilities, it is to specify the amount by which the standard contribution rate referred to in paragraph (4) should be reduced during the contribution period, so as to remove the surplus within the period of 15 years beginning on the first day of the contribution period.

(9) The Secretary of State may determine that, having regard to the level of benefits likely to be received, there should be different contribution rates for employees whose contributable salary exceeds any amount specified by the Secretary of State (“a threshold amount”), and, if so, in the case of persons whose contributable salary exceeds a threshold amount—

(a) whether the rate of contribution appropriate to a contributable salary of any amount should apply to the whole of the person’s contributable salary, or

(b) whether the rate of contribution appropriate to a contributable salary of any amount should apply only to that part of it which exceeds the threshold amount.

(10) If a determination referred to in paragraph (9) is made—

(a) the Secretary of State shall notify the scheme actuary accordingly, and

(b) the report is to contain a recommendation as to what the contribution rates should be.

(11) More than one threshold amount may be specified in a determination referred to in paragraph (9) and accordingly more than one corresponding rate may be specified in a recommendation such as is referred to in paragraph (10)(b).

(12) The rates referred to in paragraphs (4), (7), (8), (9) and (10)(b) are to be expressed as a percentage of the contributable salaries (or where appropriate the relevant parts of contributable salaries) from time to time of persons in pensionable employment and the percentage must be a multiple of 0.05.

(13) Any determination made by the Secretary of State for the purpose of this regulation shall be made with the consent of the Treasury.