The PPF in its capacity as FAS Scheme Manager and the Secretary of State for Work and Pensions provide guidance to actuaries in relation to FAS valuations.
What is the guidance for?
For undertaking a valuation under regulation 22 of the Financial Assistance Scheme Regulations 2005. This guidance on method and assumptions will be followed by actuaries undertaking valuations to determine the asset shares of members of schemes transferring assets to government in line with the FAS regulations and other statutory obligations that apply in relation to schemes in wind-up.
FAS Valuation Guidance
Guidance on the method and assumptions to use when undertaking a regulation 22 valuation and example asset share calculations can be found on the DWP site at the link below.
(update 28 May 2012 - an appendix to the guidance mentioned above, and available on the same link, was published. The appendix provides additional guidance for actuaries undertaking valuations to determine the asset shares of beneficiaries in FAS qualifying schemes that are transferring assets to government. It provides guidance on the treatment of underpin benefits in the FAS valuation).
We have also prepared a set of FAQs on accounting issues, arising from the requirement to prepare an asset share valuation. These FAQs are addressed in particular to trustees, scheme accountants, scheme auditors and other advisers involved in the preparation and audit of accounts used for the purposes of a valuation prepared under Regulation 22 of the Financial Assistance Scheme Regulations 2005 (usually referred to as an asset share valuation). They are also intended to cover the accounting and record keeping requirements for the period between the effective date of the asset share valuation, and the date of the final transfer of scheme assets to FAS.
FAS Validation Template
This is the current version of the Validation Template to be completed by the Valuation Actuary when carrying out a FAS valuation. The Validation Template is to be submitted to the PPF in order for the PPF to validate the valuation results. The accompanying guide to the Validation Template provides details about how to complete the template.
A copy of the template can be found here
Guide to the Validation Template
The guide to the Validation Template provides details about how to complete the template, who should complete it, and how to submit it. We recommend that the Valuation Actuary familiarises themselves with the guide before completing the valuation template. In particular please note that where accounts are not yet available, the actuary should expect to undertake the work in relation to the scheme’s liabilities, and submit the template partially completed. The guidance gives further details of this process.
A copy of the Guide can be found here.
FAQs on the Validation Template
We have prepared a series of FAQs on using the Validation Template, which can be found here.
Once the PPF commissions the valuation trustees are expected to ensure the scheme assets are invested appropriately to protect the value. The Q&As covering the issues can be found at:
Any questions should be directed to the scheme’s caseworker.