Funding standard and funding standard reserve
Under the funding standard provisions of the Pensions Act, 1990, as amended (the Act), defined benefit schemes (excluding certain schemes primarily in the public sector) are required to prepare and submit actuarial funding certificates at three yearly intervals, to the Pensions Authority. From 1 June 2012, such schemes must also prepare and submit funding standard reserve certificates at similar intervals.
The purpose of the actuarial funding certificate and funding standard reserve certificates is to enable the scheme actuary to certify whether or not the scheme meets the funding standard and funding standard reserve. Actuarial funding certificates and funding standard reserve certificates must be submitted to the Pensions Authority in accordance with the time limits detailed in the Act.
If the scheme does not meet the funding standard or funding standard reserve, a funding proposal must be submitted to the Pensions Authority in accordance with the time limits detailed in the Act.
Schedule BE – Funding Standard Reserve Certificate
With effect from 27 May 2013 the percentage prescribed under section 44(2)(a) of the Act, for the purpose of the funding standard reserve is 10%. This percentage should be used for all Funding Standard Reserve Certificates (FSRCs) that have an effective date of 27 May 2013 or later. The percentage to be used for FSRCs with an earlier effective date is 15%.