Financial Statements 7
25.2 Anchor Trust Final Salary Scheme Members of staff employed prior to 1 January 2003 were eligible to join a group life assurance and pension scheme which provides benefits based on final pensionable salary. The assets of the scheme are held separately by an independent fund manager, The Pensions Trust. After consultation with members, the defined benefit scheme was closed to future contributions from existing members as at 1 April 2011. The defined benefit scheme was also closed to future accrual from 1 April 2011. The total Group charge for the year was £424,000 (2023: £431,000). The contributions were determined on the basis of actuarial advice using the projected unit method and relate entirely to current service costs. The last full valuation was carried out at 30 September 2021. The next valuation is due to be carried out on data as at 30 September 2024. Anchor Hanover Group applies the provisions of FRS 102 in preparing these accounts. A valuation for the purposes of FRS 102 was prepared as at 31 March 2024 by a qualified independent actuary. The assumptions used by the actuary are: At 31 March 2024 % perannum At 31 March 2023 % per annum At 31 March 2022 % per annum Discount rate 4.88 4.87 2.78 Inflation rate (RPI) 3.17 3.20 3.60 Inflation rate (CPI) 2.94 2.93 3.29 Rate of increase in salaries 2.94 2.93 3.29 Allowance for revaluation of deferred pensions of CPI or 5% p.a. if less 2.86 2.85 3.14 Allowance for revaluation of deferred pensions of CPI or 2.5% p.a. if less 2.02 2.01 2.13 Allowance for revaluation of deferred pensions of CPI or 3% p.a. if less 2.29 2.28 2.44 Mortality in retirement 108%S3PXA [1.50%m;1.25%f] 112% S3PXA [1.50%m;1.25%f] 108% S3PXA [1.50%m;1.25%f] Allowance for commutation of pension for cash at retirement 75% of
75% of maximum allowance
75% of maximum allowance
maximum allowance
The mortality assumptions adopted at 31 March 2024 imply the following life expectancies:
Life expectancy at age 65 (years)
Male retiring in 2024 Female retiring in 2024 Male retiring in 2044 Female retiring in 2044
21.3 23.9 22.9 25.3
2024 £’000
2023 £’000
Actual return on scheme assets
(1,851) (66,934)
101
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