STATUTORY FUNDING OBJECTIVE

Question 1

Scheme Funding Objective for PRIVATE SECTOR DB SCHEMES (8)

Answer 1

Trustees must ensure scheme funding meets scheme’s TECHNICAL PROVISIONS

These are amount of assets to cover future liabilities

Scheme assets are valued at market value

Trustees must keep scheme members informed / issue regular SUMMARY FUNDING STATEM,ENTS

Provides values showing resulting surplus or deficit
Both at recent and previous valuation

Overview of any changes ie - whether deficit is increasing or reducing

May also state whether CETVs have been reduced

Should also provide overview of steps being taken to make good any shortfall