18. PENSION BENEFITS The Association provides pension benefits to employees as follows:


Defined Contribution Scheme All eligible workers are enrolled into the Association’s group personal pension plan (GPPP) under automatic enrolment legislation (the GPPP satisfies the conditions of a qualifying scheme and all new staff have been eligible to join the GPPP since April 2003). The Association’s contribution to the GPPP is equivalent to 10% of annual salary (and the employee’s is 3%). Contributions are charged to the Statement of Comprehensive Income as they become payable. The premiums paid into these plans amounted to £624,806 (2020: £619,151).


Royal Yachting Association Retirement Benefit Scheme The Royal Yachting Association Retirement Benefit Scheme is a non-contributory pension scheme for certain staff who joined before 31st March 2001 which provides retirement benefits based on final salary and length of service. The assets of the scheme are held separately from those of the Association. Future service funding rates (44.7% of pensionable salary from 1st April 2021) are determined by the scheme actuary as part of the triennial valuation.


The most recent triennial valuation available was at 1st April 2020. The value of the assets represented 97% of the benefits that had accrued to members, after allowing for expected future increases in earnings. This was equivalent to a deficit of £339,000. The financial assumptions that have the most significant effect on the results of the valuation are those relating to the rate of return on investments and the rates of increase in pensionable salaries. The principal non-financial assumption that has the most effect is mortality rates. The contributions for the year were £30,000 (2020: £117,000). The next triennial review will be carried out at 1st April 2023. The most recent FRS 102 valuation as at 31st March 2021 showed that the market value of the scheme’s assets was £12,815,000 (2020: £11,598,000). The valuation set out below has been based on the triennial valuation at 1st April 2020, as updated by a qualified actuary, in order to assess the assets/(liabilities) of the scheme in accordance with FRS 102 at 31st March 2021.


(a) Assumptions: The principal actuarial, and main financial, assumptions used to calculate the scheme liabilities under FRS 102 are: Discount rate Retail price inflation (RPI)


Consumer price inflation (CPI) Salary increase rate


Pension increases - Pre 2004 pensions - 2004-2006 pensions - Post 2006 pensions


Revaluation of deferred pensions in excess of GMP


2021 2.0%


3.4% 2.8% 1.8%


5.0% 2.8% 2.1% 2.8%


Assuming retirement at age 65, the life expectancies based on the mortality assumptions are illustrated as follows: For a male aged 65 now


At 65 for a male aged 45 now For a female aged 65 now


At 65 for a female aged 45 now


At 31st March 2021 At 31st March 2020 21.7 22.7 24.1 25.2


Mortality rates as at 31st March 2021 incorporate actual observed reductions over the last year.


2020 2.3%


2.9% 2.3% 2.3%


5.0% 2.3% 1.9% 2.3%


21.7 22.7 24.0 25.2


28


RYA ANNUAL REPORT AND ACCOUNTS 2021


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