Equal treatment legislation (PA 95, s.62) came into force on 1 January 1996 following the Barber judgment. The main effect is that every occupational pension scheme will be treated as containing an equal treatment rule which will override any contrary provisions in the actual trust deed and rules of a scheme.

an amount set aside out of past or current underwriting profits to meet future underwriting losses, in particular losses arising from claims due to the occurrence of events of an exceptional nature, that is events not normally occurring every year.

The amount set aside to prevent exceptional fluctuations in the amounts charged to revenue in subsequent years in respect of claims of an exceptional or irregular nature (e.g. catastrophes). Amounts are added to the reserves in profitable years and released when losses are made.