Preparing for a scheme funding valuation
Many companies with UK Defined Benefit pension scheme valuations in 2015 (and probably 2016) will find there are significant deficits in their schemes which will need to be funded.
It is the pension scheme trustees’ responsibility, with the assistance of their Scheme Actuary and other advisors, to assess the value of their schemes liabilities and compare these to the scheme assets to determine the funding level. As a result, many companies can be reactive to the valuation process. So, how can companies best prepare for a valuation?
In our paper “Pension Scheme Valuations - Challenges and Opportunities in 2015” we highlighted the impact of falling long term Gilts yields on pension scheme valuations and 5 actions for companies to consider for their defined benefit pension schemes.
In this paper we consider the second possible action: preparing for a scheme funding valuation.