CARRIER (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2020
NOTES TO THE FINANCIAL STATEMENTS
The notional principal of the swap is the amount used to determine the swapped receipts and payments. Collateral of £140k (2019; £70k) is held for the unrealised gain or loss on swaps comprising cash. This is held in attached accounts with Lloyds Bank, Merrill Lynch and National Westminster Bank and is not included within the Scheme assets.
14 AVC investments
The Trustee holds assets invested separately from the main fund securing additional benefits on a money purchase basis for those members electing to pay additional voluntary contributions (‘AVCs’). Members participating in this arrangement each receive an annual statement confirming the amounts held to their account and the movement in the year. The aggregate value of AVC investments is set out below:
2020
2019
Utmost Life & Pensions
-
54
206
214
Legal & General Scottish Friendly
14
14
220
282
15 Cash and other net investment balances
2020
2019
Cash - sterling
769
849
Cash – foreign currency
(219)
(142)
Total cash
550
707
Accrued investment income
361
409
16 Fair value of investments
The fair value of financial instruments has been estimated using the following fair value hierarchy;
Level (1): The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.
Level (2): Inputs (other than quoted prices included within level (1)) that are observable for the asset or liability, either directly or indirectly.
Level (3): Inputs are unobservable, i.e. for which market data is unavailable for the asset or liability.
Pooled investment vehicles which are traded regularly are generally included in category (2). Where the absence of regular trading or the unsuitability of recent transaction prices as a proxy for fair value applies, valuation techniques are adopted and the vehicles are included in category (3).
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