Every three years an actuarial valuation is undertaken for defined benefit (DB) pension schemes such as the Scottish Voluntary Sector Pension Scheme. This is required by legislation.
The valuation compares the assets of the scheme to the estimated cost of the benefits that have been earned, known as liabilities. If the assets are less than the liabilities then a recovery plan needs to be agreed to provide additional contributions from participating employers.
The valuation involves assessing the employer covenant, the financial support provided to the scheme by the participating employers, which is an important factor in determining the assumptions used in the calculation of the liabilities. TPT Retirement Solutions works closely with the Employer Committee (EC) during the valuation to discuss employer covenant, the assumptions and the recovery plan, where applicable. More information about the EC is available here.
The 2017 valuation is now in progress and the timetable, including when you can expect to hear from us, is available here. The timetable includes an Employer Forum which will take place on 27 June 2018 from 10:00am to 1:30pm at The Merchants' Hall, 22 Hanover Street, Edinburgh, EH2 2EP. Details have been issued by email.
We've prepared a summary of some common terms used in relation to the valuation and this can be viewed here.
If you haven't received an email and would like to attend the Employer Forum, or if you have any questions about the 2017 valuation, please get in touch with the Employer Relationship Team:
email Rachel Holmes or call 0113 394 2689
email Russ Graham or call 0113 394 2692.