Summary Funding Statement 2023
Every three years, the Trustee carries out a formal actuarial valuation of the Scheme, which is an estimate of how much money needs to be invested now in order to pay the pensions that members have built up. In between valuations, the Scheme actuary provides an annual estimated update. The latest formal valuation was carried out as at 31 December 2021, and the next one is due as at 31 December 2024. It can take up to 15 months to complete a valuation, but the Trustee will share the results with you once they’ve been finalised. Results of the actuarial update as at 31 December 2023 The table below shows the updates as at 31 December 2022 and 31 December 2023 alongside the results of the formal valuation as at 31 December 2021. The actuary compares the value of the Scheme’s assets with the liabilities. The liabilities are calculated by making various assumptions about what will happen in the future, such as what returns can be expected from the Scheme’s investments, how long members will live for and what future inflation rates will be. The ‘funding level’ indicates how much of the Scheme’s assets cover the value of the liabilities. So, if the funding level is 100% or above, it means that the Scheme is expected to have enough money to meet the full cost of members’ benefits.
Update 31 December 2023
Update 31 December 2022
Valuation 31 December 2021
Assets
£1,562m £1,459m
£1,548m £1,446m
£2,535m £2,288m
Liabilities
Surplus
£103m
£102m
£247m
Funding level
107%
107%
111%
As you can see from the table above, the Scheme’s funding level has remained stable since the last update was carried out as at 31 December 2022. Although the liabilities increased slightly, so too did the value of the Scheme’s assets.
For your information, there have been no payments out of the Scheme’s surplus funds to the Company since the last Summary Funding Statement.
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