Newsletter No. 42
HALCROW PENSIONERS ASSOCIATION
Newsletter No. 42 : October 2020
This is a newsletter of the Halcrow Pensioners Association. More details of HPA's objectives, organisation and its activities are here. You have been sent this newsletter because you may be a member of the Halcrow Pension Scheme or its successor, HPS2 or be a former member of HPS who has transferred to the PPF. Membership of HPA is open to all interested HPS / HPS2 members and currently costs £10/year. If you do not wish to receive the HPA newsletters then please email the webmaster to remove your name from the mailing list.
The HPS2 Triennial Review
The actuary's triennial review of HPS2 as of 31st December 2019 is in progress and should conclude with the agreement of an updated funding plan with Jacobs UK, which is now the sponsoring company. We recently checked the status of this activity with the Trustee and were advised that discussions with Jacobs were ongoing but the review should be completed before the end of this year. We will comment on the outcome in due course.
Halcrow Pension Scheme (No. 2) Announcements
The 2019 Trustee's Annual Report and Financial Statements where published on the HPS2 website in early August. For those without access credentials (available from the Pensions Team) to that site, the report is here. There has also been the announcement of a new addition to the Trustee (who has also taken over as Trustee chair). This change means that there are now four company members and two pensioner members on the Trustee board. Mr Leon Power is Jacobs Engineering Inc Senior Vice President – Finance, People & Places Solutions and Global Real Estate (based in USA) and he has been engaged as Trustee and Chair of the Board of Trustees for all of the legacy Jacobs UK and Ireland Pensions Schemes.
Halcrow Pension Scheme (No. 2) Trustee's Annual Report and Financial Statements
The value of the Scheme's assets were £630,147,000 as at 31 December 2019. We await the release of the triennial actuarial review to show the corresponding estimated liabilities at the same date. The previous actuarial valuation carried out as at 31 December 2016 determined a funding deficit of £57.9 million. The report mentions that the COVID-19 pandemic has developed after the period covered and states that this pandemic has impacted on investment markets, with the Scheme's assets falling in value by around 5% over the three months to 31 March 2020. However, over the second quarter of 2020, the value of the Scheme's assets has recovered. The report, signed in late July 2020, states that the Scheme has continued to receive deficit recovery payments in line with the agreed Schedule of Contributions. While the pandemic has had a detrimental impact on the global economy, the Trustee remains comfortable with the Employer's ongoing solvency despite the ongoing business uncertainty.
As of 31 December 2019 the scheme had 2,923 members comprising 1,524 pensioner members and 1,399 members with preserved benefits. Total membership was 2,949 on 31 December 2018. The trend in scheme membership using information from this and previous reports is shown below:
The 2019 Halcrow Group Ltd Annual Report and Financial Statements
The 2019 Halcrow Group Ltd (HGL) annual report and financial statements should have been submitted to Companies House by 30 September but is not yet available. This report will be of interest as the period includes the transfer of the HPS2 sponsorship to Jacobs UK. The most recent HGL document at Companies House is a notice that the current (ie 2020) accounting period is being shortened to 9 months so that it will align with the Jacobs UK accounting period. The most recent annual report for Jacobs UK is also not yet available at Companies House. The Jacobs report covers the year up to 30 September 2019 so the transfer of HPS2 is not included in the period but may be noted as a material event after the year end.
Burderop Park - The End, Finally
After a delay caused by the lockdown, Burderop Park was finally vacated in August 2020 and the developer has now taken possession of the site. The developer's proposals are summarised here. However, the mansion and the cottage (with various outbuildings) are not being redeveloped but are being sold separately. Anyone who wants to be reunited with the mansion or the cottage and has enough spare cash has the opportunity to buy them (click on the links). Others can wait for the new houses to be built on the site of the pavillions and car parks.
Need Somewhere to Chat?
We are currently in challenging times where it is difficult to physically socialise. However, if you would like to chat and become re-acquainted with former colleagues then there's a members' only section of the HPA forum which is away from the public gaze.
The Future of HPA
The need for HPA continues and among the possible ongoing tasks to look after HPA members' interests are:
1. To keep HPA members informed about HPS2 and other pension-related matters.
2. To closely monitor HPS2, the HPS2 Trustee and Jacobs UK (the scheme sponsoring company) to ensure that adequate contributions are made to the pension schemes. This could soon become a significant risk as the ongoing HPS2 triennial review could identify the need for increased company contributions.
3. To examine or comment on proposals for changes to pension-related laws or regulations.
4. Take opportunities to press for better supervision of pension schemes and their sponsoring companies.
5. To follow the potential changes in pension scheme rules arising from the Hampshire vs PPF and Bauer court decisions.
Previous Newsletters
If you haven't been with HPA from the start or want to remind yourself of previous events then you can browse through the previous newsletters for which there is a full list here.