EC Meeting Papers July 2018

General Federation of Trade Unions Pension Scheme

Trustees’ Annual Report

Year Ended 31 December 2017

The last full actuarial valuation of the scheme was performed by Mercer Human Resource Consulting as at 31 December 2012. The next full actuarial valuation is due to be carried out as at 31 December 2015.

The trustees are required under the Pensions Act 1995 to obtain periodical valuations on a prescribed basis to assess whether the contributions payable are sufficient to meet the minimum funding regulations.

The day-to-day management of the investments of the scheme has been delegated by the trustees to Legal & General Investment Management. The trustees receive regular reports from Legal & General Investment Management regarding the performance of their investments and review their investment strategy from time to time. No formal review was conducted in the year ended 31 December 2017. Legal & General Investment Management are remunerated on a fees basis.

The last actuarial valuation was carried out as at 31 December 2015. The scheme had a deficit of £1,080,000 at 31 December 2015.

To correct this shortfall, the recovery plan has been agreed between the trustees and the employers. The GFTU agreed to pay additional contributions to the GFTU section totalling £30,000 for 2014, £45,000 for 2015 and £70,000 per annum for a period of seventeen years from 2016 to 2032 inclusive.

The net assets of the scheme increased by £837,721 (8.43%) over the year giving a scheme value of £10,773,190 at 31 December 2017.

Custodial arrangements

The scheme’s assets are held in the names of the nominees by the scheme’s investment custodian. The investment custodian operates a system of internal controls to ensure the security of the scheme’s assets and an annual report on these controls is provided to the trustees together with an opinion on the adequacy of these controls from the custodians’ external auditor.

Employer-related investments

There are no employer related investments.

During the year, it was discovered that the administration costs of the scheme have been borne by the scheme and not by the employers, as required by the scheme rules since 1 January 2009. Steps have been taken, with the agreement of the employers, to recoup these costs.

Signed for and on behalf of the Trustees of the General Federation of Trade Unions Pension Scheme on ………………………..2017.

………………………. Chair of the Trustees

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