(1)Regulations may require the trustees or managers of a pension scheme—
(a)to have a policy for dealing with a deficit or surplus in respect of any collective benefits that may be provided by the scheme, and
(b)to follow that policy if a valuation report shows a deficit or surplus.
(2)For the purposes of this Part—
(a)there is a “deficit” in respect of a collective benefit if the probability of the scheme meeting a target in relation to the benefit is below the required range, and
(b)there is a “surplus” in respect of a collective benefit if the probability of the scheme meeting a target in relation to the benefit is above the required range.
(3)Regulations under subsection (1)(a) may, in particular—
(a)require the trustees or managers to consult about the policy;
(b)make provision about the content of the policy;
(c)set out matters that the trustees or managers must take into account, or principles they must follow, in formulating the policy;
(d)make provision about reviewing and revising the policy.
(4)The regulations may, in particular, require the policy—
(a)to be formulated with a view to achieving results described in the regulations within a period or periods described in the regulations;
(b)to contain provision for a deficit or surplus to be dealt with in one or more of a range of ways described in the regulations;
(c)to contain an explanation of the possible effect of the policy, or any requirements imposed by regulations under section 22, on members in different circumstances.