Issued on: 19 October 2011
The Social Housing Pension Scheme (SHPS) has launched a benefit review and consultation exercise with employers who are part of the Scheme. This forms part of the triennial actuarial valuation process. SHPS employers have been contacted to seek their views on benefit preferences going forward into 2013 and beyond in order for the SHPS Committee to agree the benefit structure with the Trustee on behalf of employers.
This benefit review runs in conjunction with the Scheme’s 2011 actuarial valuation, the results of which the SHPS Committee expects to publish by the middle of May 2012.
SHPS Employers have been invited to a series of Employer Forums, taking place across England and Wales during October and November 2011 at which the SHPS Committee and its advisers will present on benefit review proposals, scheme funding and investment issues (including the actuarial valuation) and impending legislation affecting SHPS Employers.
Colin Small, Chair of the SHPS Committee, commented: “At each of the last two valuations, the SHPS Committee has taken the opportunity to engage with employers on the benefits they wish to see offered in the Scheme. We are continuing our approach of consulting with employers over the benefit options, as well as keeping them informed of the Scheme’s progress on areas involved in the management of the Scheme.”
The SHPS Committee expects to announce the preliminary results of the actuarial valuation on
18 May 2012 and a short period of consultation on deficit repayment will then take place with employers until the end of June 2012.
The triennial valuation, required by statute takes place against a backdrop of difficult market conditions, as falls in the stock market and low interest rates will both have adversely affected the Scheme’s funding position. Speaking about the valuation, Logan Anderson, Head of Customer Relations at The Pensions Trust stated: “The recent market turmoil will present a challenge to the SHPS Committee, as it will to employers who fund the Scheme’s benefits. SHPS benefit review will allow employers to take stock of the range of benefits available in the Scheme, including the recently introduced DC section and seek their views on how the offering should look going forward.”
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