30. Pension costs (continued)
The scheme is subject to triennial valuation by an independent actuary using the projected unit method. The most recent
triennial valuation was undertaken as at 31 December 2022 and reported a funding surplus of £4,881,000.
Following closure of the scheme to future accrual on 30 June 2010, there were no employer contributions made by the Charity in
2023 (2022: £nil). The Charity does not expect to make any contributions in 2024.
For the purposes of the disclosures required under FRS 102, the actuarial valuation has been updated at 31 December 2023 by a
qualified actuary using the following assumptions:
Financial assumptions 2023 2022
Discount rate 4.50% 4.80%
Retail price inflation 3.10% 3.20%
Consumer price inflation 2.60% 2.50%
Rate of increase in salaries n/a n/a
Rate of increase in pensions in payment RPI capped at 5% 3.00% 3.20%
Rate of increase in pensions in payment RPI capped at 2.5% 2.10% 2.30%
Rate of increase in deferred pensions 2.60% 2.50%
The liabilities allow for future discretionary increases of RPI (capped at 5% per annum) to be awarded each year on pension
accrued to 6 April 1997.
Mortality assumptions 2023 2022
Using mortality table 105% S3PMA_All 105% S3PFA_AllCMI_2022 1.25% With default
extended parameters [1.25%] (year of birth) (2022: Using mortality table 100% S3PMA_
Middle/ 100% S3PFA_Middle CMI Model 2020 [1.25%] (year of birth))
life
expectancy
life
expectancy
years years
Males at 65 21.1 21.4
Females at 65 23.6 23.8
Males at 65 aged 45 in 2023 22.4 22.7
Females at 65 aged 45 in 2023 25.0 25.3
An analysis of the scheme assets and the expected long-term return rates at 31 December 2023 was as follows:
2023 2022
£'000 £'000
Bonds 35,017 36,271
Other 4,321 1,698
39,338 37,969
Assets do not include any amounts for the Charity's own financial instruments or property occupied, or other assets used by the
Charity. The scheme's assets include £51,000 (2022: £55,000) of insured annuity policies in relation to pensions secured prior to
May 1993. These insured annuity policies are included in the figure provided for "other" above.
119
Environmental, social
and governance review
Financial review
Strategic report
Overview
Financial statements
Thank you