The Scheme Actuary carries out a formal assessment of the Scheme’s financial health at least every three years to check that the Scheme has enough assets to meet future expected benefit payments and to check that the contribution rates remain appropriate.
If the Actuary’s calculations show a funding shortfall, the Trustee and participating employers will need to agree a Recovery Plan. A Recovery Plan sets out how the Trustee and Employers will correct a funding shortfall, which may require payment of extra contributions.
In between formal assessments, the Trustee monitors the Scheme’s funding level on a regular basis. The Trustee also monitors the Scheme’s investments and the strength of the employer covenant.
The Scheme Trustee prepares an annual summary funding statement for members, beneficiaries and employers providing information from the Scheme’s latest financial health check. The latest statement from spring 2021 can be found here.