GN11 certificate meaning

In pensions practice, a gn11 certificate is the scheme actuary’s written confirmation to the trustees of a defined benefit occupational pension scheme that cash equivalent transfer values (CETVs) are, or will be, calculated in accordance with the statutory requirements and the applicable actuarial guidance historically known as GN11. The expression derives from UK pensions law under the Occupational Pension Schemes (Transfer Values) Regulations 1996, which require trustees to set the transfer value basis on actuarial advice and for the actuary to certify compliance with the legislative minimum cash equivalent. Although the Institute and Faculty of Actuaries’ Guidance Note GN11 has since been withdrawn and superseded by the Financial Reporting Council’s Technical Actuarial Standards and IFoA actuarial standards, practitioners still use “GN11 certificate” as shorthand for this certification. The certificate is typically issued when the transfer value basis is set or changed. It records the method and key actuarial assumptions (for example discount rates, mortality and any allowance for scheme funding), and evidences governance for trustees, members and regulators. Usage is broadly consistent across England and Wales, Scotland and Northern Ireland. In Ireland, similar actuarial certifications exist, but the term “GN11 certificate” is not generally used.