First thing to say is that the "FRS 102 total deficit" of £8.4bn is an 'accounting' deficit. It is not the scheme deficit used to calculate contributions from members & eers. The accounting deficit is used by companies with DB schemes in their year-end balance sheets. 2/
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For year ending March 31 2018,
#USS accounting deficit fell to £8.4bn from £17.5bn in 2017. From 2017 to 2018, scheme assets grew from £60bn to £63bn but liabilities also fell by £5.5bn to £72bn over same period. The fall in liabilities was largely due to two factors. 3/Deze collectie tonen -
Liabilities are estimated on basis of assumptions about future investment returns (discount rate) & life expectancy, among factors USS has tweaked these assumptions Firstly, the discount rate (used to put a price in today's money of pension promises paid decades into future) 4/
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In general, if a discount rate decreases, a pension plan needs more assets today to be sure it can generate enough returns to pay pension & vice versa with increase in DR. USS has increased its discount rate from 2.57% in 2017 to 2.64% in 2018, helping shrink liabilities. 5/
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The adoption of a higher discount rate by USS is in keeping with other private sector schemes. This year, Tesco sliced its DB deficit largely by increasing its discount rate from 2.5% to 2.9%.
#USS has also cut into its liabilities by lowering life expectancy assumptions. 6/Deze collectie tonen - Einde van gesprek
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Thank you so much for your work. I don’t know how I would feel (*knows exactly how would feel*) if your outstanding journalism wasn’t here (*hits refresh for updates by employer and union*)
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Great summary. I get it now (sort of).
Bedankt, Twitter gebruikt dit om je tijdlijn te verbeteren. Ongedaan makenOngedaan maken
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Het laden lijkt wat langer te duren.
Twitter is mogelijk overbelast of ondervindt een tijdelijke onderbreking. Probeer het opnieuw of bekijk de Twitter-status voor meer informatie.