§ Mrs. Curtis-ThomasTo ask the Secretary of State for Social Security what assessment he has made of the minimum funding requirements for pension funds with reference to venture capital. [124756]
§ Mr. RookerThe Minimum Funding Requirement (MFR) does not prescribe how pension funds should invest their assets. Investment practice is a matter for pension schemes. The MFR is intended to provide a reasonable level of security for members in the event of the employer becoming insolvent and requires defined benefit schemes to hold a minimum level of assets to meet their liabilities valued according to a prescribed methodology. We have asked the Faculty and Institute of Actuaries to carry out a review of the minimum funding requirement and will be consulting shortly on the proposals in their report. My right hon. Friend the Chancellor of the Exchequer has also asked Paul Myners to conduct a review of institutional investment which is considering this and other issues.