We have taken this opportunity to publish a standalone final version of the Fast Track tests and conditions previously published as Appendix 1 of our document 'Response to Fast Track and regulatory approach consultation'.
In order to make it a standalone document, we have made some minor alterations. This includes amending the introduction to give more of the context for Fast Track valuation submissions, which previously featured in the main body of the original document and deleting later repetition of this.
We have also defined abbreviations which had originally been defined elsewhere in the original document.
Following feedback from industry, we have also taken the opportunity to make some limited and minor changes to wording, to clarify our intentions.
- In the section 'Fast Track – technical provisions', where a scheme has a prudent low dependency funding basis, such that it chooses to use the Fast Track Low Dependency Funding basis to meet this test, we have reverted to wording closer to that we consulted on. In this scenario, it is the duration on the Fast Track Low Dependency Funding basis that should be used.
- In the section 'Fast Track - recovery plans' we have made clear that the allowance for increases in deficit repair contributions under a Recovery Plan can be used when considering the cumulative amount paid under the Recovery Plan. Following the response to the consultation to provide more flexibility, we introduced mitigations to the Recovery Plan conditions in this section, and it is our intention to allow this as well, which we have now made explicit.
- In the section 'Fast Track – low dependency funding basis' we have made some limited amendments to make clearer that, as we proposed and consulted on, the assumptions in the scheme's low dependency funding basis must meet the prescribed Fast Track requirements as set out in this section.
We have started the process of engagement with industry in respect of the actuarial confirmation we referenced in our consultation response document. We have taken the opportunity to make more explicit in the 'Submission or confirmation by scheme actuary' section our expectation that the confirmation will cover all Fast Track requirements, as was the intention we consulted on.
We intend to publish the wording to be used for confirmation in the next few months.