FUNDING TARGETS Sample Clauses
The FUNDING TARGETS clause defines the specific financial goals or benchmarks that must be met within a project or agreement. It typically outlines the minimum and/or maximum amounts of funding required, the timeline for achieving these targets, and may specify the consequences if the targets are not met, such as project delays or termination. This clause ensures all parties are aligned on financial expectations and provides a clear framework for measuring progress, thereby reducing uncertainty and managing risk related to funding shortfalls.
FUNDING TARGETS. The Parties agree that Projects will be approved so that, by the termination of this Agreement, of the total contribution as specified in Section 3.1, at least 40% will have been committed to Green Projects.
FUNDING TARGETS. 9.1. The funding target relates to what happens to the liabilities for the members being outsourced at the end of the contract, on termination of the admission agreement or other exit of an employer, and may also take into account the administering authority's view on the strength of the scheme employer's covenant.
9.2. The presumption will be that the scheme employer will provide a "subsumption commitment" (i.e. be responsible for the future funding of the liabilities post-exit). This will automatically apply to the non-active liabilities of admission bodies in Part 3 paragraph 1(d)9i) of Schedule 2 which commenced in the Fund after 15 December 2017, i.e. these liabilities and any associated assets will be subsumed by the relevant Scheme employer. This should be confirmed in all other cases.
9.3. Outstanding liabilities of employers from whom no further funding can be obtained are known as orphan liabilities.
9.4. The Fund will seek to minimise the risk to other employers in the Fund of having to make good any deficiency arising on the orphan liabilities.
9.5. To achieve this, as set out in the Funding Strategy Statement, when an exiting employer would leave orphaned liabilities, the administering authority will seek sufficient funding from the outgoing employer to match the liabilities with low risk investments, generally Government fixed-interest and index-linked bonds.
9.6. Where an admission body is admitted and there is no subsumption commitment from a tax raising employer or the Administering Authority determines that the scheme employer which would subsume the assets and liabilities on the admission body's exit is not of sufficiently strong covenant, the new employer will be set ongoing contributions calculated to meet the 'ongoing' orphan funding target. This funding target takes account of the approach taken to value orphan liabilities on exit and will be reviewed at each triennial valuation on the advice of the actuary. Where the 'ongoing' orphan funding target applies the value of the transferring liabilities, and hence notional asset transfer sufficient (where a fully funded transfer applies) will be higher than using a subsumption basis. Similarly, the contribution rate payable by the admission body will be higher than payable by the scheme employer, potentially materially so. Whilst this approach does not guarantee that there will be no exit payment due, it should materially reduce this risk.
9.7. The exit valuation for admission bodies unde...