Part 1: Collective Money Purchase Benefits Valuation and benefit adjustment Section 20: Actuarial valuations
This section requires the trustees of a collective money purchase scheme to instruct the scheme actuary to prepare actuarial valuations of the scheme. An actuarial valuation of a collective money purchase scheme will form the basis of the calculation of the rate or amount of benefits to be provided under the scheme.
	Subsection (2) sets out what should be included in such a valuation – the actuary must report on:
the scheme assets and their value;
the amount expected to be required to provide benefits under the scheme; and
whether the rate or value of the benefits need to be adjusted under the rules of the scheme.
	Subsection (4) provides that the scheme actuary must prepare the actuarial valuation in accordance with the scheme rules.
	Subsection (5) gives power to the Secretary of State to make regulations about the actuarial valuations, including the information and statements they must contain, when the report must be prepared, and when it must be submitted to the Pensions Regulator.
	Subsection (6) set out that where regulations have not been made to specify the frequency of the actuarial valuation, trustees are required to obtain an actuarial valuation within the period of one year beginning with the date the qualifying scheme is established and on an annual basis thereafter.
	Subsection (7) provides that where regulations have not been made to specify the date by reference to which the actuarial valuation is to be prepared, the date is to be the effective date.
	Subsection (8) makes provision for financial penalties under section 10 of the Pensions Act 1995 (civil penalties) to apply in cases where trustees have failed to take all reasonable steps to obtain an actuarial valuation.