Defined Benefit - Employers
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 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 Scheme Committee (SC) and Employer Committee (EC) during the valuation to discuss employer covenant, the assumptions and the recovery plan, where applicable.
Preparation for the 2018 valuation will start soon, which will value the Scheme as of 30 September 2018. A copy of the 2015 valuation report is available upon request. The documents below were issued to the employers during 2016:
SHAPS DB - Consultation Template (2015)
SHAPS - Employer Form of Authority