Halcrow Pensioners Association




The sum of money in invested in cash, bonds and equities to meet pension liabilities. This increases each year with interest and dividends (net of investment managers fees); contributions from the employer; and contributions from those employees who are still actively accruing benefits. It is depleted each year by payments to pensioners and those opting out, and some expenses.
For HPS in 2008, assets stood at £M277.

Technical Provisions (TPs):

The sum of money required to pay all the pension liabilities (i.e. accrued benefits) for each member based on their pension (in payment or deferred), age, and assumptions about salary increase (for active members), life expectancy, age at which they start drawing their pensions, and the age and life expectancy of their spouses and dependants. In the case of the HPS, life expectancy is based on the UK average for a person 2 years younger than the member or spouse, 80% of members are married and 3 years older than their wives. The TPs are calculated separately for pensioner members, deferred pensioners and active members.
For HPS in 2008, total TP’s stood at £M478.

Deficit = Assets less TP’s:
For HPS in 2008, the deficit stood at £M201.

Buy-out cost:

The estimated amount that would have to be paid to an insurance company as an annuity to assume responsibility for paying the TP’s 
For HPS in 2008, the assets were only about 40% of Buy-out costs plus winding-up costs of £M1.2, suggesting Buy-out costs were about £M672 (This was not stated explicitly in the valuation report).


Buy-out cost plus plus Winding up costs less Assets
For HPS in 2008, the solvency was £M395.

PPF Deficit:

The Section 179 valuation less assets.
For HPS in 2008, the PPF deficit was £M151.

Section 179 Valuation:

An assessment of the total compensation that would be paid to members if the scheme entered the PPF.
For HPS in 2008, the Section 179 Valuation was £M428 (back-calculation from assets and PPF deficit).