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<p>The legislation governing the funding of defined benefit occupational pensions
schemes is designed to be flexible, allowing the trustees or managers of these schemes
to determine which method and assumptions are to be used in their schemes technical
provisions. A number of factors come into play in scheme funding decisions and the
Pensions Regulator provides useful guidance for trustees in its codes and supporting
guidance and statements.</p><p> </p><p>In determining the discount rate to be used,
trustees must act prudently taking into account the yield on assets held by the scheme
and / or the market redemption yields on Government bonds or other high-quality bonds.</p><p>
</p><p>There is no standard actuarial method and set of assumptions that must be used,
however, should the Regulator have concerns about a funding plan it can intervene.</p>
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