Statutory funding objective

Resource type: Glossary item

Status: Maintained

Jurisdiction: United Kingdom

Introduced by the Pensions Act 2004, the statutory funding objective (SFO) requires that an occupational pension scheme (www.practicallaw.com/8-107-6900) that is a salary-related scheme (www.practicallaw.com/9-107-7188) must have sufficient assets to cover its technical provisions (www.practicallaw.com/1-206-1963). If a scheme does not meet the SFO, its trustees must agree a recovery plan (www.practicallaw.com/9-206-1964) with the scheme's principal employer (www.practicallaw.com/4-201-6479).

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Resource ID: 3-206-1962
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Topics

Funding and Investment: PensionsFunding and Investment: Pensions (http://ld.practicallaw.com/1-205-7956)

Practice note: overview

Pensions in the UK: overview Pensions in the UK: overview (http://uk.practicallaw.com/topic2-235-7983)
Pensions: asset purchases Pensions: asset purchases (http://uk.practicallaw.com/topic1-107-3542)

Practice notes

Cross-border pension schemes Cross-border pension schemes (http://uk.practicallaw.com/topic9-206-1087)
Multi-employer pension schemes Multi-employer pension schemes (http://uk.practicallaw.com/topic4-206-0962)
Pensions Regulator: clearance applications Pensions Regulator: clearance applications (http://uk.practicallaw.com/topic2-205-5042)
Scheme-specific funding:issues in practice Scheme-specific funding:issues in practice (http://uk.practicallaw.com/topic7-382-9908)
Using contingent assets Using contingent assets (http://uk.practicallaw.com/topic9-206-7961)

Glossary

Recovery plan Recovery plan (http://uk.practicallaw.com/topic9-206-1964)
Statement of funding principles (SFP) Statement of funding principles (SFP) (http://uk.practicallaw.com/topic6-206-1965)
Technical provisions Technical provisions (http://uk.practicallaw.com/topic1-206-1963)

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