Here you'll find all the guidance you'll need to complete a valuation in line with sections 143, 152, 156, 158 and 179 of the Pensions Act 2004. Section 143 valuations This section is relevant for actuaries completing a valuation to determine a scheme's funding level.
From time to time we consult on possible changes to our actuarial assumptions. You can find details of those consultations and their findings here. 2023 consultation on assumptions We are holding a six-week consultation on possible changes to the actuarial assumptions used for valuations carried out under section 143 and section 179 of the Pensions Act 2004.
Paragraphs 26 and 27 of Schedule 7 of the Pensions Act 2004 set out the circumstances in which the compensation cap applies and how and when it should be increased. In July 2021 the Court of Appeal ruled the PPF compensation cap was unlawful on the grounds of age discrimination, so we’re no longer applying it and we’re removing it from affected PPF pensioners. The information below is provided for advisers who still need to refer to previous calculation tables and factors.
If you need to access step down factors that were used in the past, simply follow the links to the appropriate tables, detailed below. Effective dates on or after 1 October 2020 and prior to 1 October 2021 For all determinations in respect of a step down pension with an effective date between 1 October 2020 and 30 September 2021, please use the following:
In all cases, the early retirement factor is applied to the compensation before the compensation cap is applied. Simply follow the links to the tables of early retirement factors detailed below:
The Pension Protection Fund (Compensation) Regulations 2005 permit the postponement of compensation and any separate lump sum in specified circumstances up to age 75. Pension compensation calculation The amount of pension compensation, payable late, is calculated according to the table in the link below:
The circumstances in which early payment is possible are set out in Regulation 2 of the Pension Protection Fund (Compensation) Regulations 2005. Pension compensation calculation The amount of pension compensation payable early is calculated according to the table in the link below. This applies to all compensation determinations for early retirement with an effective date on or after 1 October 2022.
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