Skip to main content
TrusteesIn this
section

Select the help icon in Exchange exchange help icon for further guidance to a particular scheme return question.

For further information on how to use Exchange, including how to associate to a registered scheme, see Exchange: online service.

On this page

Scheme return checklists

Download our checklists to help you complete scheme returns for DB and hybrid schemes. 

Exchange help files

  • Exchange help 

    View the help text for scheme return questions on Exchange. You don’t need to login to access this page.

    Note: some of the help text names may appear more than once due to the way Exchange manages information.

DB scheme return: important information

FRS17/IAS19 liabilities

You should base your response to the FRS17/IAS19 liabilities question on the values in the scheme's principal employer's accounts. This should be based on the number used in the employer's audited accounts. FRS17/IAS19 liabilities can be found in the employer's latest published accounts.

The principal employer is the employer named in the scheme’s latest trust deed and rules. The principal employer usually has powers to, for example, appoint trustees to the scheme, amend the scheme rules or wind up the scheme.

Types of multi-employer schemes

There are two broad types of multi-employer schemes: non-segregated schemes and segregated sectionalised schemes.

Within each type of multi-employer scheme, there are then three further categories depending on scheme requirements when an employer ceases to participate:

  • schemes with a requirement to segregate
  • schemes with discretion to segregate
  • schemes with neither a requirement nor discretion to segregate

You should tick one option only from the above categories to define the structure of your scheme. Where the rules provide for both a) an option to segregate in some circumstances and, b) a requirement to segregate in other circumstances, you should choose option a).

You should consider obtaining legal advice before completing this section, if necessary.

Weighted average age

The 'weighted average age' is the average age across the membership that has been calculated in such a way that more allowance (or more 'weight') is given to an age of a member with greater liabilities.

Period and cohort life expectancy

Expectations of life can be calculated in two ways: ‘period life expectancy’ or ‘cohort life expectancy’. For more information go to the Government Actuary's Department's information on period and cohort expectations of life.

Period @ 65 - this is the expected age at death for a 65 year old if post valuation date improvements are assumed to be zero.

Cohort @ 65 - this is the expected age at death for a 65 year old pensioner at valuation date allowing for future improvements.

Cohort @ 45 - this is the expected age at death for a 65 year old pensioner on retirement 20 years after valuation date allowing for future improvements.

What information on cohort and period life expectancy do I need to provide?

It is the cohort expectancy implied by the tables used - it doesn't matter whether the tables used are C= or U= or involve the cohort adjustments.

Example 1: If PMA92 tables with year of birth and long cohort is adopted for both current and future pensioners

Formally this is PMA92lc(U=2008)

Period life expectancy for a 65 year old now

= life expectancy for a 65 year old using the 92 tables with long cohort projections to CY 2008 = 86.0

Cohort life expectancy for a 65 year old now

= life expectancy for a 65 year old using the 92 tables year of birth=1948 with long cohort = 88.7

Cohort life expectancy at 65 for a 45 year old now

= life expectancy for a 65 year old using the 92 tables year of birth=1968 with long cohort = 89.8

Example 2: Where current pensioner assumption is PMA92 long cohort to CY 2020, where future pensioner assumption is PMA92 long cohort to CY 2030

Formally this is PMA92lc(C=2020/2030)

Period life expectancy for a 65 year old now is unknown if no decision has been made on split between base and improvement. We expect that most will regard their approach as an approximation to 92lc YoB and hence put in 86.0

Cohort life expectancy for a 65 year old now

= life expectancy for a 65 year old using the 92 tables long cohort projections to 2020 = 88.3

Cohort life expectancy at 65 for a 45 year old now

=life expectancy for a 65 year old using the 92 tables long cohort projections to 2030 = 89.2.

Guaranteed Minimum Pensions

If your scheme liabilities include Guaranteed Minimum Pensions (GMPs) you need to provide the Scheme Contracted-Out Number (SCON).

SCON

When the scheme became contracted-out HM Revenue and Customs (HMRC) (or its predecessor, the Inland Revenue) will have issued a contracting-out certificate. The Scheme Contracted-Out Number (SCON) is shown at the top of the certificate.

A SCON reference number is issued to you by the National Insurance Services to Pensions Industry (NISPI).

You must enter it in the correct format, which is: the letter S, followed by 0 or 1 or 2 or 4 or 6 or 8, followed by six numbers, followed by a letter.

For more information contact the HMRC contracted out pensions helpline on 0300 200 3507.

Schemes with more than one NPA

Where more than one Normal Pension Age (NPA) applies, you need to input the age that applies to the largest proportion of liabilities for your scheme.

You should only include active and deferred members for this calculation. You shouldn't include pensioners and dependants.

Scheme and employer membership

For scheme membership complete the membership table with the number of members in the pension scheme for each of the categories (active, deferred and pensioner). Only count each member once. (For example, if a member has both active and deferred benefits, only count the member once as an active member).

For employer membership, provide the current number of members that hold a DB entitlement within the scheme. Include any members who have defined contributions (DC) with DB underpin, DB with DC underpin, DC with guaranteed minimum pension, and equivalent pension benefits.

Include annuitants (excluding dependants for scheme membership and including dependants for employer membership) where the annuity has been bought in the name of the trustees. Where a dependant is not in receipt of a benefit from the scheme they are not counted as members. Exclude any death benefit only members, dependants (spouses and children) and annuitants where the annuity has been bought in the name of the member.

DB scheme return: example form

home.trustees.reporting_requirements.scheme_return.scheme_return_db_specific_faqs.page