SOCPF Funding
Our priority as Trustee is to make sure that all members’ benefits are paid in full and on time throughout the life of the Fund.
To help us do this, the Fund Actuary carries out a valuation every three years. This is a detailed financial health check of the Fund. In the years between these valuations, our advisers give us an update on the Fund.
The Actuary compares:
- The Fund’s assets – the value of the investments held
- The Fund’s liabilities – the estimated amount needed to pay all future benefits
If the assets are less than the liabilities, the Trustee and the Company need to agree on how much the Company should contribute to make up the difference.
The chart below shows the funding position as at 31 December 2024 compared with the previous actuarial valuation as at 31 December 2023. At each date, the assets were greater than the liabilities.
2024
Funding Position 31 Dec 2024
| £3,430m | Assets |
| £3,250m | Laibilities |
| 106% | Funding level |
2023
Valuation 31 Dec 2024
| £3,813m | Assets |
| £3,652m | Laibilities |
| 104% | Funding level |
To help explain some of the technical terms used in this section, we’ve included a jargon buster on page.
Change in funding position since the last edition
The Trustee’s Funding Objective is 100% funding or greater. The summary below shows that the Fund was 106% funded at 31 December 2024.
Since the last valuation as at 31 December 2023, the funding level has improved. While the assets in the Fund have gone down over the year, particularly the investments in UK government bonds, the amount that is expected to be needed for future benefit payments (liabilities) has also gone down. The reductions are similar because our investments are aligned with liability matching assets. However, the decrease in asset values is slightly small than the reduction in liabilities, resulting in a modest improvement in the funding level. The Fund continues to benefit from the support of a strong sponsoring employer.
| Valuation as at 31 Dec 2023 | Funding level 104% |
| Valuation as at 31 Dec 2024 | Funding level 106% |
