2020 Annual Report and Financial Statements

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).

22

Made with FlippingBook Converter PDF to HTML5