Financial Statements 2018/19


29.Pension Schemes (continued) Basis for estimating assets and liabilities


The liabilities have been assessed using the projected unit method, an estimate of the pensions that will be payable in future years are dependent on the following major assumptions:


Longevity assumptions: Member life expectancy Life expectancy is based on the Fund’s VitaCurves with improvements in line with the CIMI 2018 model, an allowance for smoothing of recent mortality experience and long term rates of 1.25% per annum for males and females.


Based on these assumptions the average future life expectancies assuming retirement at age 65 (years) are: At 31 July 2019


Current pensioners (retiring today) Males Females Future pensioners (retiring in 20 years)* * Figures assume members aged 45 as at the last formal valuation date (31 March 2016).


Historic life expectancy Life expectancy for the prior period end are based on the fund’s Vita Curves. The allowance for future life expectancies are shown below:


Period ended 31 July 2018


Prospective Pensioners


CMI 2013 model assuming the current rate of improvements has peaked and will converge to a long term rate of 1.25%


Pensioners


CMI 2013 model assuming the current rate of improvements has peaked and will converge to a long term rate of 1.25%


The longevity assumptions used to value the obligations in the University’s closing position are different to those used to value the obligations in the University’s opening position.


Commutation


An allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up to HMRC limits for pre-April 2008 service and 50% of the maximum tax-free cash for post-April 2008 service.


Financial assumptions:


Retail prices inflation (RPI increases) Consumer prices inflation (CPI increases) Rate of increase in pensions (CPI increases) Rate of increase in salaries Discount rate for liabilities


Investment Returns:


The return on the funding market value terms for the period to 31 July 2019 is estimated based on actual fund returns as provided by the scheme administrators and index returns where necessary. Details are set out below:


Actual returns from 1 July 2018 to 30 June 2019 Total returns from 1 August 2018 to 31 July 2019


6.0% 7.3%


At 31 July 2019


3.4% 2.4% 2.4% 2.7% 2.1%


At 31 July 2018


3.4% 2.4% 2.4% 2.7% 2.8%


Males Females


21.0 23.3


22.3 25.1


At 31 July 2018 21.9


24.3


23.9 26.5


98


Middlesex University


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108