SHPS has recently written to participating employers to provide results of the 30 September 2017 valuation, a little over a year after the effective date of the valuation. As trailed, we have seen a bigger deficit reported and a material increase to future service costs, and a revised approach to meeting the larger deficit. This note summarises these results and also considers some options
available to employers in respect of future pension provision and employee contributions.
2017 valuation results – past service
The 2014 valuation disclosed a deficit of around £1.3bn and a funding level of 70%. Despite contributions towards the deficit of £350m over the last three years (after allowing for expenses and benefits accrued), employers had been warned that the likely outcome of the valuation was a higher deficit and the results of the 2017 valuation have indeed revealed an increased deficit of £1.5bn.
XPS Pensions Group PLC (LON:XPS) operates as an employee benefit consultancy firm. The Company offers pensions actuarial, administration, compliance, and advisory services. Following their merger of Xafinity and Punter Southall in January 2018, XPS Pensions Group became the largest purely pension consulting and administration firm in the UK.