alan Wrote:
JollyDee Wrote:
Page 5 in the 2 years 16 and 17 the company (aka David Gorton) added £280,000 because the scheme was underfunded.
The scheme was in surplus pre Natural Retreats. Please tell me more?
The muppet JollyDee was quoting the sum of the "Total Costs" line on page 18 (as numbered) of the 2017 CML accounts (£180k + £100k) without understanding that pensions costs can accrue without being funded by CML/NAIL, hence the scheme deficit grew over those years. The cash contribution amount paid by CML in 2017 is as Olderalan said and in black and white on page 19, £24k.
As for how the scheme is now in deficit after being in surplus in 2014 (so I'm told; haven't checked), it seems to be mainly down to actuarial assumptions: a decrease in the annual rate that future pension payments are discounted back to present-day values from 2.7% to 2.5% (this increases the present-day value of the future pensions to be paid), and an increase on the 'commutation factor' (the rate at which pension can be converted into lump sum cash) from 12.0 to 22.4. The old 12.0 figure seems very low and I'm wondering if it's a typo, but if correct this would also increase the company's pension liabilities.
Around 75% of the scheme's assets are held in bonds or cash in 2016 & 2017, therefore matching the liabilities, so NAIL can't IMO be accused of influencing anything risky or unusual with the assets.
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