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With Profits Section
Summary

The With Profits Section of the Cheviot pension was set up by the Cheviot Trust as a money purchase arrangement. With effect from July 2014, new legislation re-classified the With Profits Section as a cash balance scheme. This means that it is now subject to the scheme specific funding regime.

Funding valuation and basis

  • The Scheme Actuary undertakes a valuation every three years. The last valuation was undertaken as at 31 December 2017. The valuation showed a funding level on an ongoing funding basis of around 102%. On this basis, the Trustee did not consider it necessary to require contributions from employers.
  • The valuation reflected current mortality assumptions and makes specific provision for expenses over a five-year period to the end of 2022.
  • The Actuarial Report as at 31 December 2018 is available. This showed a deterioration of the funding position following less positive returns in 2018. The funding level has improved during 2019 – see June 2019 funding update.

Investment strategy

  • The allocation to the Investment Fund (on risk assets) is 55% of Scheme assets.
  • The Trustee’s investment strategy is set out in the Statement of Investment Principles.

 

If you have any queries please contact the With Profits team using the following email address withprofits@cheviottrust.com


Disclaimer: Cheviot accepts no liability to third parties in respect of the information on this page and linked documents which is provided in good faith but is not legal advice or binding on the Trustee and should not be relied upon to determine any particular course of action. The trust deed and rules will override in the event of any inconsistency.

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