Summary Funding Statement 2022
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 2021 and an update was carried out as at 31 December 2022. The next formal valuation is due as at 31 December 2024 and the Trustee will share the results of this valuation in 2025. Results of the actuarial update as at 31 December 2022 The table below summarises how the Scheme’s assets compared with its liabilities as at 31 December 2022, the date of the actuary’s latest estimate. The results of the previous actuarial valuation as at 31 December 2021 are also shown. For the purpose of comparing assets and liabilities in the table below, Additional Voluntary Contributions (AVCs) have been excluded from both the assets and liabilities. 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. 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.
Actuarial report (estimate) 31 December 2022
Actuarial valuation 31 December 2021
Assets
£1,605m £1,446m
£2,535m £2,288m
Liabilities
Surplus
£159m
£247m
Funding level
111%
111%
As you can see, the value of the Scheme’s liabilities reduced over the year, which was caused by changes in market conditions, but this reduction was broadly matched by a fall in the value of the Scheme’s assets. The end result is that the funding level has remained unchanged.
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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