Part 1: Collective Money Purchase Benefits Valuation and benefit adjustment Section 18: Calculation of benefits
This section sets legal requirements on how benefits under a collective money purchase scheme must be calculated and adjusted.
	Subsections (1) and (2) require that the method for calculating the rate or amount of benefits must be set out in the scheme’s rules. This must include rules on how the assets of the scheme are identified and valued, how the amount expected to be required for providing benefits under the scheme is to be determined, and rules about how the rate or amount of benefits is to be adjusted. Regulations made under subsections (4), (5) and (6) can make provision about the matters which must be included in the rules, including how adjustments are to be treated, and assumptions and methods underpinning the benefit calculation.
	Subsection (7)(a) makes it clear that the regulations made under subsection (4) of this section can apply to both future benefits and to benefits which have already accrued in the scheme, ensuring that future adjustments of benefits accrued before the regulations came into force will be in accordance with the regulations.
	Subsection (7)(b) allows regulations made under this section to override scheme rules where there is a conflict.