Commentary on Sections Scheme funding Section 230: Matters on which advice of actuary must be obtained
839.Subsection (1) imposes a requirement on the trustees or managers of a scheme to obtain advice from the scheme actuary before making any decision about: the methods and assumptions which are used by the actuary in calculating the scheme’s technical provisions; preparing or revising the scheme’s statement of funding principles; preparing or revising a recovery plan; preparing or revising the schedule of contributions; or modifying the scheme as regards the future accrual of benefits.
840.Subsection (2) provides a power for regulations to impose obligations on scheme actuaries to comply with any prescribed requirements when providing advice to the scheme’s trustees or managers on these matters.
841.Subsection (3) provides for these regulations to require the actuary to take account of prescribed guidance. Such guidance would be prepared and reviewed by a prescribed body, such as the Faculty and Institute of Actuaries, and approved by the Secretary of State. It is intended that such guidance would specify factors and considerations which the actuary would be required to take into account when providing advice to the scheme’s trustees or managers within subsection (1).
842.Subsection (4) provides for civil penalties to apply to a trustee or manager who fails to take all reasonable steps to comply.