Results of the 2017 valuation

12 July 2018

The 2017 valuation has now been finalised and the Trustees are pleased to announce that they are able to provide new bonuses to members.

The key points:
• The new bonuses will provide increases equivalent to 4.2% of guaranteed pensions in each of the next six years.
• The first bonus will take effect from 1 October this year. The five remaining bonuses will take effect at around the same time in 2019, 2020, 2021, 2022 and 2023.
• These bonuses will be provided with certainty over the next six years and cannot be lost in that time, even if financial markets perform disappointingly.
• Without these new bonuses, most members’ total pensions would not have increased in 2018, 2019 and 2020 and potentially beyond.
• Bonuses, and therefore increases to total pensions, from 2024 and beyond will depend on the outcome of the 2023 and subsequent actuarial valuations.
• We have also been able to secure improved benefits for members under age 60 who have not yet retired and are in serious ill health.

This is a brief summary of the key results of the 2017 valuation that affect members’ benefits. Members who are already receiving their pension will be provided with further details in their individual pensions increase letter which will be sent later in the year. Members who are not yet drawing their pension will be sent a benefit statement early next year. In the meantime, further information about the valuation is available on pages 2 to 6 in the latest edition of Pensions Newsline.