The Valuation Process
Actuarial Valuations of the Scheme, and the relevant Sub-funds are normally carried out every three years. The purpose of the valuation is for the Scheme’s Actuary to assess whether the long term value of the assets held is sufficient to meet the liabilities.
As any valuation can only be an estimate of the Scheme’s assets and liabilities at a point in time, it is important to carry out regular valuations to check that the Scheme continues to have sufficient assets.
The amount of money in the Fund is maintained at the level necessary to provide the benefits promised in the Rules. If there are more than enough funds to pay the promised benefits, the difference is known as a surplus. Where a surplus is disclosed, it is divided equally between Scheme members and the Government. Scheme members’ share is used to provide benefit improvements.