Summary Funding Statement 2024 Each year the Trustee provides you with a statement of the Scheme’s financial position to help you understand the state of the Scheme’s finances.
The actuary does a formal valuation of the Scheme every three years and, for the years in between, provides the Trustee with an estimate of how the funding position has changed. The latest formal valuation was carried out as at 31 December 2024. The next formal valuation is due as at 31 December 2027, and the Trustee will share the results of this valuation in 2028. The assets of the Scheme come from contributions paid by members and by the employers, together with investment growth. The assets of the Scheme are held separately from the employers, and the Scheme’s Trustee is responsible for investing this money, after taking professional advice. The assets of the Scheme are held in a common fund – they are not held in separate pots for each member. Pensions are paid to retired members out of this common fund.
How the underlying funding position has changed since the previous valuation The ‘funding level’ is the measure by which the value of the assets cover the value of the liabilities. So if, at the valuation date, the Scheme is expected to have enough money to meet the full cost of all members’ benefits, the funding level is 100% or above.
Valuation date
Valuation 31 December 2021
31 December 2024 (consistent approach)
Assets
£2,535m £2,288m
£1,479m £1,287m
Liabilities
Surplus
£247m
£192m
Funding level
111%
115%
The table above shows the Scheme’s funding position at the previous valuation and the latest valuation, using a consistent method to value the Scheme’s assets and liabilities. This like-for-like comparison shows that the Scheme’s funding level has improved since the last valuation. This improvement is primarily driven by rises in interest rates, which have significantly reduced the value placed on the liabilities. The rise in interest rates also reduced the value of the Scheme’s assets but by a smaller proportion than the liabilities.
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