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.
Please note: valuations, signed on or after 10 November 2011, which show a funding level greater than 100 per cent, must contain an explicit statement that: ‘making allowance for Guaranteed Minimum Pension (GMP) equalisation will not change the funding level to less than 100 percent’.
Guidance to follow for s143 valuations:
There are a number of guidance documents that must be read for s143 valuations. These are as follows:
1. H6 version of the guidance for valuations with an effective date after 6 April 2017.
Guidance for undertaking the valuation in accordance with Section 143 of the Pensions Act 2004 (version H6, April 2017)
2. Additional information issued in August 2018:
Additional information for carrying out a Section 143 valuation
3. Guidance on assumptions, Version B8, for valuations with an effective date on or after 13 June 2018:
Please note that this guidance and information will be updated from time to time.
How to submit Section 143 valuations
As set out in our guidance, here is the certificate, which must be completed and included in your valuation return:
Certificate for the Purposes of section 143 of the Pensions Act 2004
Please provide an electronic Excel version of the completed data and liability spreadsheet when submitting s143 valuations.
If prompted, please SAVE the spreadsheet rather than opening.
For s143 valuation versions B7 or later, please submit Data and Liability Information spreadsheet (section 143 valuations, version B7 and B8).
For s143 valuation versions B6 or earlier, please submit Data and Liability Information spreadsheet (Section 143 valuations, version B6 and earlier).
This liability and information excel spreadsheet should be completed and sent to us electronically.
You may also find it helpful to view valuation guidance that was valid for previous periods.
How we determine funding without an s143 valuation
In July 2012, changes to the Pensions Act 2004 - the Pension Protection Fund (Miscellaneous Amendments) Regulations 2012 – came into effect. These changes mean that we can request the actuary to provide an estimate of the protected liabilities and assets for the scheme instead of a section 143 valuation.
The following statement – version F2, February 2016 – includes guidance to actuaries who are providing the estimate as well as setting out how we’ll make our funding determination.
Statement setting out how we will make a funding determination
And here is the template certificate to use when sending your estimate to us.
Certificate of estimate for our funding determination purposes (version B7 and B8).
Please note: an electronic Excel version of the completed certificate must be provided – if prompted, please SAVE the spreadsheet rather than opening it.
For estimate version B7 or later, please submit Certificate of estimate for PPF funding determination purposes (version B7 and B8).
For estimate versions B6 or earlier, please submit Certificate of estimate for PPF funding determination purposes (version B6 and earlier).
Section 152 valuations
Guidance and statement
If you’re an actuary carrying out a valuation in accordance with s152 and for a reconsideration application under s151, then this guidance and accompanying statement is for you.
Guidance for actuaries conducting a valuation under section 152 and statement setting out how we’ll make a funding assessment under section 152 of the Pensions Act 2004 (version D3, April 2017)
Here is the template certificate for your funding estimate that you need to send to us. This will be an electronic Excel version, which should be saved, not opened, when prompted.
Certificate of estimate for our funding assessment purposes
And you’ll find further details about the reconsideration process here: Guidance for overfunded schemes at the section 143 valuation stage
Section 156 valuations
This guidance is relevant for actuaries undertaking a valuation of a closed scheme in accordance with section 156 of the Pensions Act 2004.
Guidance for actuaries conducting a valuation under section 156 of the Pensions Act 2004 (version C3, April 2017)
Section 158 valuations
Due to the very small number of these valuations, we’ve decided not to issue formal guidance on this. So if you have any questions about this, or need a copy of the formal s159 certificate, please contact your actuarial contact.
Section 179 valuations
Here you’ll find all the information you need to carry out a section 179 valuation to calculate a schemes’ funding position.
We use the result of your valuation to calculate the scheme’s levy and we also combine all the s179 valuations for eligible schemes so that we can assess the general level of scheme underfunding, which we use to set the levy quantum and scaling factor.
The following guidance, version G8, should be used for all s179 valuations with an effective date on or after 6 April 2018:
Guidance for undertaking the valuation in accordance with Section 179 of the Pensions Act 2004 (version G8, April 2018)
The following guidance, version A9, should be used for all s179 valuations with an effective date on or after 1 November 2018:
Guidance on assumptions to use when undertaking a valuation in accordance with Section 179 of the Pensions Act 2004 (version A9, November 2018)
This certificate, which forms part of the actuary’s s179 valuation report, should be given to the scheme’s trustees and not sent directly to us:
Certificate required under section 179 valuation
The information from the certificate should form part of the annual scheme return, which will be sent to us via the Pension Regulator’s Exchange system.
All guidance is reviewed from time to time and might be changed.
It is possible to update the s179 valuation pages of Exchange at any time.