Sub-funds that make up the Scheme

For accounting purposes the Scheme is split into a number of Sub-funds:

The Guaranteed Fund

This is the Fund which contains the assets necessary to pay all of the guaranteed liabilities, which are the benefits due to members from their employment in the industry and the annual RPI increase on these benefits.

The Bonus Augmentation Fund

This Sub-fund holds members’ 50% share of surpluses.


The Guarantor’s Fund

This Sub-fund receives the Guarantor’s 50% share of surpluses declared after 1994, which is gradually released to the Government as a stream of annual payments.

The Investment Reserve

This Sub-fund holds the unused balance of British Coal’s share of surpluses from the final valuations before privatisation. This money will be available as first call to meet a deficiency in the Guaranteed Fund but, if not required for this purpose, will be payable to the Government over a period of not less than 25 years from 31 October 1994.