Trustee’s Annual Report & Financial Statements 2018

The Scheme Actuary has produced the annual actuarial update, which gives an estimated liability based on the 2015 assumptions of £5,080m as at 31 March 2018. Assets at the same date were £5,097m. This means the Scheme had a surplus of £17m, slightly lower than the surplus of £29m at 31 March 2017. This continues the trend over the last few years, which has seen the funding level stay stable at around 100% funding.

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Trustee’s Annual Report & Financial Statements 2016

Estimated funding position Each year, the Scheme Actuary provides the Trustee with an estimated funding position, based on the assumptions agreed at the previous triennial valuation. As at 31 March 2016, the Defined Benefit assets of the Scheme were £4,914m and the liabilities were estimated to be £4,987m. This indicated that the Scheme had a small deficit of £73m and a funding ratio of 99%. 

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Trustee’s Annual Report & Financial Statements 2015

In addition to the strength of the Covenant provided by the Company and the Guarantee, the security of the Scheme and its ability to deliver the pensions promised to its members are also a function of its funding level. As at 31 March 2015, the Scheme was 100% funded, with a surplus, based on assumptions agreed for the October 2012 valuation, of £4m. The combination of the security provided by the Company and the 100% funding level gives the Trustee confidence that it can deliver the Scheme’s pension promises. The assumptions to be used for the latest triennial valuation, with an effective date of 31 March 2015, are being discussed with the Company in accordance with normal practice. Finalisation is expected this year. 

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Trustee’s Annual Report & Financial Statements 2014

In early May 2013, Invensys plc (the Company) completed the sale of its Rail division to Siemens. This was detailed in Trustee’s Annual Report & Financial Statements 2013. As a result of this sale, the Scheme benefited from: 

  • A cash contribution of £400m The £400m was invested into the Scheme on 3 May 2013. The assets are included in this year’s accounts. 
  • The creation of a Reservoir Trust of £225m funded by the Company This was available to fund the Scheme in the future, if necessary

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Trustee’s Annual Report & Financial Statements 2013

The year to March 2013 was dominated by work on a key project: the sale by Invensys plc (the Company) of its Rail division to Siemens. This project completed in early May 2013 and therefore the figures presented in the financial statements exclude the assets transferred to the Scheme as part of that transaction. In total, the transaction led to the following benefits, worth up to £625m, flowing to the Scheme: 

  • A cash payment of £400m to the Scheme 
  • A new trust, the Reservoir Trust, being established with £225m of funding from the Company, which will be available to fund the Scheme in the future, should it be required.

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Trustee’s Annual Report & Financial Statements 2012

Insofar as the current funding position as at 31 March 2012 is concerned, the valuation by the Scheme’s Actuary of the Scheme’s Defined Benefit (DB) Section showed assets of £4,271m (2011 £3,967m) and liabilities of £4,819m (2011 £4,202m), representing a funding position of 89% (2011 94%). Including the Defined Contribution Section, AVC and Protected Rights, the Scheme’s total assets were £4,283m (£3,979 in 2011). So although our asset values have increased, in common with other Defined Benefit Schemes, the valuation of our liabilities also increased substantially due to the exceptional pricing of UK government bonds. It is the price of these bonds that is used to value the Scheme’s pension liabilities. As and when the economy and markets recover, the valuation of liabilities could be expected to reduce – thereby reducing the deficit in the future.

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Trustee’s Annual Report & Financial Statements 2010

On 31 March 2010, the value of the Fund was £3,877m (2009: 3,567m). The investment return on the assets was +14.3% compared to a Scheme specific performance benchmark that measured 8.0%. This compares to a return in 2009 of (3.9)% against the Scheme specific benchmark of 4.9%. Investment managers are set a target return which is above the Scheme specific benchmark. Further details are provided in the Investment Report on pages 17 to 19.

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Trustee’s Annual Report & Financial Statements 2009

On 31 March 2009, the value of the Fund was £3,567m (2008: £3,895m). The investment return on the assets was (3.9%) compared to a Scheme specific performance benchmark that measured 4.9%. This compares to a return in 2008 of 4.7% against the Scheme specific benchmark of 10.3%. Investment managers are set a target return which is above the Scheme specific benchmark. Further details are provided in the Investment Report on pages 17 to 19.

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Trustee’s Annual Report & Financial Statements 2008

On 31 March 2008 the value of the Fund was £3,895m (2007: £3,838m). The investment return on the assets was 4.7% compared to a Scheme specific performance benchmark that measured 10.3%. This compares to a return in 2007 of 0.4% against the Scheme specific benchmark of 1.0%. Investment managers are set a target return which is above the Scheme specific benchmark. Further details are provided in the Investment Report on pages 17 to 19. The main the reason for the Scheme’s underperformance is due to the Higher Performance portfolio. This portfolio has been changed substantially in the last 12 months.

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Trustee’s Annual Report & Financial Statements 2007

On 31 March 2007 the value of the Fund was £3,838m (2006: £4,002m). The investment return on the assets was 0.4% compared to a Scheme specific performance benchmark that measured 1.0%. This compares to a return in 2006 of 14.0% against the Scheme specific benchmark of 14.2%. Investment managers are set a target return which is above the Scheme specific benchmark. Further details are provided in the Investment Report on pages 13 to 15. In the main the Scheme’s underperformance is due to the equity portfolio. This portfolio has been changed substantially in the last 12 months and will be revised by September 2007. The Scheme was closed to new members on 1 November 2004 but remains open to further accrual for existing members, and the Company now offers new employees membership of a contract based stakeholder pension scheme.

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