A reminder of the Contribution Reserve Account (CRA)

The Contribution Reserve Account (CRA) was established in 2014 to provide an additional layer of security for members’ benefits. Since then, the Company has paid contributions into the CRA, creating a reserve that the Trustee could have called upon if the Fund’s funding position deteriorated.

As the funding position improved significantly in recent years, it was agreed that the assets held in the CRA were no longer required for that purpose and they were therefore returned to the Company. This reflects the CRA operating exactly as it was designed to. It provided an important financial buffer at a time when additional protection was considered appropriate and when the Fund was in a stronger position, those funds were released.

The Company continues to pay contributions equivalent to 20% of pensionable salaries into the CRA, which means the reserve will begin to build up again over time.