The Board recognises contributions paid into the scheme between valuations that have served to improve funding on a section 179 basis.

 Deficit-reduction contributions are defined as total contributions (with no adjustment being made for investment returns) less:

• the cost of accrual of scheme benefits, subject to the adjustments described in section 4.1 of the section 179 guidance (measured using section 179 valuation assumptions)
• scheme expenses incurred between valuations
• the cost of augmentations granted since the previous valuation
• benefits paid out of the scheme

As noted above in relation to contingent assets, details of how the Board will treat deficit reduction contributions for the purposes of the pension protection levy for 2010/11 are set out in the Board’s determination under section 175(5) of the Pensions Act 2004 which was published on 18 December 2009.

The Deficit-Reduction Contributions Appendix to the Board’s determination (under Section 175(5) of the Pensions Act 2004) in respect of the 2010/11 Levy Year sets out how actuaries must calculate the amount to be certified, and how that amount should be communicated to the Board.