ANCHOR-R&A-2024-FNL-080824

25.3 Surrey County Council Pension Fund Anchor Hanover Group participated in the Surrey County Council Pension Fund until it exited the scheme on 31 July 2023. This was a defined benefit scheme administered by Surrey County Council under the regulations governing the Local Government Pension Scheme. Employees of Anchor Hanover Group who joined Hanover Housing Association prior to 1 July 2003 were admitted to the Surrey County Council Pension Fund. The scheme was closed to new entrants from this date. Following the Group's exit from the Fund on 31 July 2023, a cessation valuation was performed by Hymans Robertson to determine the liabilities of the Fund in respect of current and former employers. The valuation concluded that an exit surplus of £2,921,000 would be payable to Anchor Hanover Group as the final cessation value. Upon cessation, Anchor Hanover Group followed the approach set out in FRS 102 and recorded a surplus in profit and loss equivalent to the cessation value of the scheme. The previous pension costs of this arrangement were assessed in accordance with the advice of an independent qualified actuary using the projected unit method. The assumptions used by the actuary are:

At 31 March 2024 % per annum

At 31 March 2023 % per annum

Discount rate

n/a n/a n/a n/a

4.75 4.00 3.00 4.75

Rate of increase in salaries Pension increase rate Expected return on assets

The assets in the scheme were:

Market value at 31 March 2024 £’000

Market value at 31 March 2023 £’000

Equity type

– – – – –

31,825 13,426 3,481

Bonds

Property

Other

994

Total assets

49,726

Present values of defined benefit obligation, fair value of assets and defined benefit liability

Market value at 31 March 2024 £’000

Market value at 31 March 2023 £’000

Note

Fair value of scheme assets

– – – – –

49,726 (48,972)

Present value of defined benefit obligation

Surplus

754 (754)

Effect of asset ceiling

Deficit in the scheme to be recognised

25

104 Anchor Hanover Group Annual Report & Financial Statements 2024

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