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.

Memorandum of Understanding
The Board of the Pension Protection Fund and the Actuarial Profession share a common interest in the quality of FAS valuations. They are concerned that this valuation is both prepared in accordance with the relevant legislation and guidance, and that this is done in a timely and professional manner. They have signed a Memorandum Of Understanding that enables them to exchange information relevant to ensuring that these professional standards are maintained.

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 here:

http://www.dwp.gov.uk/docs/fas-guidance-on-valuation-under-reg22.pdf

Guidance is also provided on the preparation of accounts and for actuaries to value particular assets:

http://www.dwp.gov.uk/docs/fas-prep-accounts-guide-for-actuaries.pdf

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

This is a test link for the zipped version

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

Scheme Investments
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: