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The Committee received the Scheme's Annual Funding Statement report, its 'Annual Health Check'. It is pleased to report that the Scheme's funding position has improved since the valuation date, 30 September 2015 from 76% funded as of 30 September 2016.
The improvement in the funding level is in line with the Actuary's expectation. However, the actual monetary value of the deficit has increased from £197m to at the 2015 valuation date to around £210m at 30 September 2016. This is because both the assets and the liabilities have grown significantly (around 30%) in the year to 30 September 2016. The funding level (assets divided by liabilities) has improved but due to the growth in both assets and liabilities the funding deficit (liabilities less assets) has actually increased.
The main contributing factors to the change in the funding level are: a reduction in government bond yields has increased the value of the liabilities; a better than assumed investment performance together with the deficit contributions paid has increased the value of the assets.