Schemes in surplus details

Schemes in surplus as at most recent part 3 valuation date - financial assumptions

Discount rate structure

Please indicate the discount rate structure adopted for the calculation of the technical provisions as part of the most recent triennial (Part 3) actuarial valuation. The discount rates for the scheme’s technical provisions are typically found within the actuarial valuation report and/or the Scheme’s most recent “statement of funding principles”. If you are unsure which of the four options to choose, then please consult with the scheme actuary for further guidance.

Time to "horizon" rounded to the nearest year

Where the discount rates used to calculate the scheme’s technical provisions are calculated pre- and post- a defined “horizon” period, please define the time “horizon” to the nearest year.

Information regarding the discount rates and time horizon used for the scheme’s technical provisions are typically found within the actuarial valuation report and/or the Scheme’s most recent “Statement of funding principles”. If you are unsure of the correct time horizon which applies, then please consult the scheme actuary.

This question is only applicable if discount rate structure (C) is selected.

Discount rate assumption pre retirement/pre time horizon

Commonly a scheme has a discount rate that applies to liabilities for a period either “pre retirement” or pre a “defined time horizon”. Please input this “pre” discount rate.

Alternatively if the scheme adopts a single discount rate to value the scheme liabilities then please input the single discount rate which applies.
Information regarding the discount rates for the Scheme’s technical provisions are typically found within the actuarial valuation report and/or the Scheme’s most recent “Statement of funding principles”.

If you are unsure what rate should be entered, please consult the scheme actuary.

Discount rate assumption for pensioners

A scheme will use a discount rate that applies to pensioner liabilities. Please input the relevant rate here. Should the scheme use the same discount rate for pensioners as they do for non pensioners, please input the same rate as used in the previous question above.

Alternatively if the Scheme adopts a single discount rate to value the scheme liabilities then please input the single discount rate which applies.

Information regarding the discount rates for the Scheme’s technical provisions are typically found within the actuarial valuation report and/or the Scheme’s most recent “Statement of funding principles”. If you are unsure what rate should be entered, then please consult with the scheme actuary for further guidance.

Pay increase assumption, excluding promotional scale

If the Scheme remains open to future accrual for active members/employees then typically the accruing pension benefits will be linked to pay increases in some way. Please input the assumption which has been adopted as part of the technical provisions calculations (which refer to pay increase assumptions).

Please do not include any assumptions relating to promotional salary scales.
Information regarding the pay increase assumptions for the Scheme’s technical provisions are typically found within the actuarial valuation report and/or the Scheme’s most recent “Statement of funding principles”. If you are unsure what rate should be entered, please consult the scheme actuary.

Where a scheme has no active members and all deferred members (if any) have their benefits calculated using their salary as at the date they became deferred, please enter 0 here.

RPI assumption

Commonly schemes will use RPI as a reference point for setting some of the financial assumptions used to calculate the technical provisions such as increases in deferment and increases applied to pensions in payment.

Please state the rate of RPI inflation which is consistent with the assumptions used for inflation linked indexation (used for indexation in payment or deferment).
Information regarding the RPI assumptions for the Scheme’s technical provisions are typically found within the actuarial valuation report and/or the Scheme’s most recent “Statement of funding principles”. If you are unsure what rate should be entered, please consult the scheme actuary.

CPI assumption

Commonly schemes will use CPI as a reference point for setting some of the financial assumptions used to calculate the technical provisions such as increases in deferment and increases applied to pensions in payment.

Please state the CPI rate assumed. Where the scheme does not have any CPI inflation linked benefits then this input should be zero.

Information regarding the CPI assumptions for the Scheme’s technical provisions are typically found within the actuarial valuation report and/or the Scheme’s most recent “Statement of funding principles”. If you are unsure what rate should be entered, please consult the scheme actuary.