Every three years an actuarial valuation is undertaken for defined benefit (DB) pension schemes such as the Independent Schools’ 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 valuation date is 30 September 2020, and we are working towards sharing the preliminary results with employers in spring 2021.
We have shared with our employers some five-minute reads relevant to the valuation process which include:
Please also download our valuation timetable.