UK: TPT Retirement Solutions: Growth plan 2020 valuation

We summarise the key results of the 2020 Valuation. If you are an employer with Series 1 or Series 2 liabilities, then the 2020 Valuation will determine the level of deficit reduction contributions (DRCs) and expenses you will be required to pay going forwards.

Valuation results

The results of the 2020 Valuation have calculated the ongoing funding position of the GP at 30 September 2020 and placed a value on the level of deficit in the GP.  The results of the 2014, 2017 and 2020 valuations are shown in the table below.

Ongoing fundng valuation30 September 201430 September 201730 September 2020
Surplus / (Deficit)(£177m)(£131m)(£33m)*
Funding Level82%86%96%

* The 2020 Valuation no longer builds in an allowance for future GP expenses in the deficit figure. Following consultation with the Employer Committee, these expenses will now be paid for in addition to the DRCs. Allowing for expenses (to compare with the 2014 and 2017 results) the deficit would have been £58m (93% funded).

Even ignoring the change in approach for expenses, the GP has seen an improvement in funding position and this will likely be welcomed by many employers, especially given the recent volatility in economic conditions.

Read the full article at Barnett Waddingham.