Jargon

The money within the Fund. This is built up from member and Company contributions, including investment growth on those contributions.

This is a separate account, set up in 2014, where any additional Company contributions are paid if the SCPF is already adequately funded. Member contributions always go directly to the SCPF.

We take the value of the assets in the Fund and compare it to the value of the liabilities as a percentage.

The present value of the expected benefits due to members. This is based on the benefits members have earned and assumptions for the future made by the Scheme Actuary. This figure represents the amount expected to be needed today to pay the expected benefits.

When there are more assets in the Fund than expected liabilities, the funding level would be more than 100%.

Assets that closely match the change in value of pension liabilities, predominantly index-linked gilts (a UK government bond).

Investment in high-quality corporate bonds and other similar bond-like investments. These help to improve investment returns while limiting the risks that come with investments.

Assets that aim to increase in value, such as equities (investments in the shares of companies listed on a stock exchange), bonds (loans made to companies), property, hedge funds and private equity.

A reference point for measuring how well investments have performed. A benchmark may be the performance of the wider market or a return target.