Cap. 450 Art. 35Underprovision in an occupational benefit retirement scheme.

(1) This article applies to every defined benefit retirement scheme, which is an occupational scheme, other than one falling within such class or description as may be prescribed.

(2) Where an actuarial valuation shows that, on the effective date of the valuation, the value of the scheme assets is less than the amount prescribed for the purposes of article 31(1)(a) (the difference shown in the valuation hereinafter referred to as ''the shortfall''), the employer, shall -

(i) by making an appropriate payment to the retirement scheme administrator, or

(ii) by such other method as may be prescribed, secure an increase in the value of the scheme assets which, taken with any contributions paid, is not less than the shortfall.

(3) The required increase in that value must be secured -

(a) before the end of such period as may be prescribed reckoned from the date of the valuation, or

(b) if the actuarial valuation was obtained by reason of a statement in a certificate as is referred to in article 31(3), before the end of a prescribed period reckoned from the date of the certificate.

(4) Except in such circumstances as may be prescribed, if the employer referred to in subarticle (2) fails to secure the required increase in value before the end of the period applicable under subarticle (3), the retirement scheme administrator shall within the period of thirty days reckoned from the end of that period, give written notice of that fact to the Authority and to the beneficiaries of the scheme.

(5) Except in such circumstances as may be prescribed if the employer referred to in subarticle (2) fails to secure the required increase in value before the end of the period applicable under subarticle (3), then so much of the shortfall as, at any subsequent time, has not been met by an increase in value made under subarticle (2) or otherwise by contributions made before the end of that period, shall be recoverable by the retirement scheme administrator and the provisions of article 34(2) shall mutatis mutandis apply with regard to any such debt.

(6) The Authority may extend, or further extend the period referred to in subarticle (3), and where it refuses to extend or further extend the period it shall give written notice of the refusal together with a statement of reasons for its decision. date of the valuation, the value of the scheme assets is more than the amount prescribed for the purposes of article 31(1)(b) (the difference shown in the valuation hereinafter referred to as ''the excess''), the Authority may issue a directive to the employer and the retirement scheme administrator, to take such steps by such method as may be approved by the Authority to secure an appropriate reduction in the value of the scheme assets.

(3) The required reduction in that value must be secured before the end of such period as may specified in the directive.

(4) If the employer and retirement scheme administrator fail to secure the required reduction in value before the end of the period applicable under subarticle (3), the retirement scheme administrator shall within the period of thirty days reckoned from the end of that period, give written notice of that fact to the Authority and to the beneficiaries of the scheme.

(5) The Authority may extend, or further extend the period referred to in subarticle (3), and where it refuses to extend, or further extend the period it shall give written notice of the refusal together with a statement of reasons for the decision.