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Scheme funding & restructuring

DB scheme funding

In funded DB schemes, employees and employers usually pay regular monthly payments into a pension scheme and the money gathered is set aside in the scheme’s trust fund. This fund is kept separate from the employer’s business accounts, ensuring that existing funds will be available to pay members’ pensions even if the employer goes out of business.

At least every three years, the scheme's actuary values the liabilities of the scheme, compares this to the value of the scheme's assets and calculates the amount of money that must be contributed into the scheme in future years to meet the benefits that are payable.

The actuarial valuation is a report on this review of the assets and liabilities of the scheme at a specified date. It must be made available on request within nine months of the date of the actuarial valuation.