47
WWT Report and Financial Statements 2012/13
27. Pension commitments
(a) Defined benefit scheme
WWT operates a funded pension scheme providing
benefits based on final pensionable pay. The scheme
was closed to new entrants from 1 April 1997 and ceased
further accrual of future benefits on 31 October 2005.
A qualified actuary, who is not an officer or employee
of WWT, calculates the outstanding liability at the end
of each year. A full actuarial valuation is performed
every three years. The most recent actuarial valuation
was carried out as at 31 March 2012 and showed
the scheme in deficit by £3.6m. The FRS17 valuation
has been updated at 31 March 2013 using revised
assumptions that are consistent with the requirements
of FRS17. The values of both the assets and liabilities
reflect market conditions on 31 March 2013 and so the
figures can be expected to be quite volatile from year to
year. Investments have been valued, for this purpose, at
a fair value.
The FRS17 valuation at 31 March 2013 shows the
deficit of £521k at 31 March 2012 move to a deficit of
£2,420k. The position has worsened due to changes
to the actuarial assumptions used, offset by employer
contributions made during the year.
Since the scheme ceased further accrual in 2005, there
has been no pension charge. However, WWT has paid
£255k in cash (2011/12: £255k) to the scheme during
the year in accordance with the schedule of contributions
and has paid the premiums for death-in-service cover
provided under the scheme, as requested by the insurer.
Over the next year to 31 March 2014 WWT expects to
make contributions of £255k, rising to £275k in 2014/15
and continuing for a period of 19 years.
The employer and the Trustees of the pension scheme
have agreed funding objectives and these are set out
in the Statement of Funding Principles dated 24 March
2011.
2013
2012
Financial assumptions:
Deferred pension revaluation rate
2.6%
2.2%
Inflation linked pension escalation rate
3.0%
2.7%
Discount rate
4.0%
4.6%
Price inflation (RPI)
3.2%
2.8%
Price inflation (CPI)
2.6%
2.2%
Mortality assumptions:
Post retirement mortality table
Males
Females
93% of S1NMA
93% of S1NFA
PNMA00
PNFA00
Birth year mortality improvement
Long cohort,
subject to a min
rate of imp’t of 1%
pa
Med cohort, subject
to a min rate of
imp’t of 1% pa
Life expectancy for a current 65 year old
Males
Females
24 yrs
27 yrs
23 yrs
25 yrs
Other assumptions:
Cash commutation
No allowance
No allowance
Major assumptions used for the actuarial valuation were:
Retirement: for 2012 and 2013, members assumed to retire at Normal Retirement Age. Allowance is made in respect of
service where the member has the right to retire earlier.
