HC Deb 09 March 1998 vol 308 c88W
Mr. Quentin Davies

To ask the Secretary of State for Social Security what plans she has to alter the minimum funding requirement on pension schemes so as to take into account the lower forecast net dividend yield. [32975]

Mr. Denham

The detailed requirements for minimum funding requirement (MFR) valuations are set out in regulations and in an actuarial guidance note produced by the Faculty and Institute of Actuaries and approved by the Secretary of State. The Faculty and Institute have set up working groups to look at the effects of the July Budget changes on a number of issues, including the MFR, and officials are in close contact with the profession. Although the Faculty and Institute have made recommendations for changes to the valuation method following the Budget changes, they have now indicated that they wish to do further work on the operation of the MFR generally before revising their guidance note. Any changes must await their further recommendations.