Every three years an actuarial valuation is undertaken for defined benefit (DB) pension schemes such as SHAPS. This is required by legislation.
The valuation compares the Scheme's assets 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 Scheme Committee (SC) and 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 2021 valuation is now underway and we anticipate the consultation between the SC and EC starting in March 2022 with the results being shared with employers in summer 2022. If you have any questions about the 2018 valuation please get in touch with the Employer Relationship team.
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