CARRIER (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2020
NOTES TO THE FINANCIAL STATEMENTS
Valuation and classification of investments Investment assets and liabilities are included in the financial statements at fair value. Where separate bid and offer prices are available, the bid price is used for investment assets and the offer price for investment liabilities. Otherwise, the closing single price, single dealing price or most recent transaction price is used.
Where quoted or other unit prices are not available, the Trustee adopts valuation techniques appropriate to the class of investment.
The methods of determining fair value for the principle classes of investments are:
Bonds and certain pooled investment vehicles which are traded on an active market are included at the quoted price, which is normally the bid price. Unitised pooled investment vehicles which are not traded on an active market but where the manager is able to demonstrate that they are priced daily, weekly or at each month end, and are actually traded on substantially all pricing days are included at the last price provided by the manager at or before the year end. Exchange traded futures are valued at the difference between exchange settlement prices and inception prices. Forward exchange contracts are valued at the gain or loss that would arise from closing out the contract at the reporting date by entering into an equal and opposite contract at that date. Swaps are valued at the net present value of future cash flows arising therefrom. With profits insurance policies (including those held as AVC investments) are reported at the policy value provided by the insurer based on cumulative reversionary bonuses declared and the current terminal bonus. AVC investments are valued at the market value provided by the AVC provider at the year-end date. Accrued interest is excluded from the market value of bonds, but is included in investment income receivable.
4 Contributions
2020
2019
Employer contributions Normal
293 787
1,340
Deficit
540
PPF Levy Expenses Additional
86
67
368
385
-
50
1,534
2,382
Employee contributions Normal
10
41
Additional voluntary
-
1
10
42
Total contributions
1,544
2,424
Regular contributions in respect of both employers and employees ceased after March 2020 as a consequence of the Scheme closing to the accrual of further benefits.
Deficit funding contributions are payable until March 2026 (previously December 2023) at the rate of £540k pa whilst the deficit, as calculated annually, is greater than £540k. Lower amounts are payable if the deficit is calculated to be below £540k. Furthermore, there is provision for payments in advance with the agreement of the Trustee and employers. In the year advanced payments of deficit funding contributions which would otherwise have been received in the year to 31 December 2021 amounted to £247k.
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