Scheme actuary calculates funding at least every 3 year, also known as the Funding Rate.

The calculation is complex and it projected the scheme’s benefits or liabilities to retirement.

The actuary makes assumptions  allowing them to calculate the projected benefits for each member on retirement, on death or exit from the scheme

They will also consider the value of assets underlying the scheme against the projected future liabilities.

The actuary will then compare the difference in estimated assets vs liabilities to calculate the funding rate needed until the next review.