TRUSTEES' REPORT AND ACCOUNTS 2022 75
Notes to the accounts continued
Year ended 31 December 2022
24. Events after the end of the reporting period
Between the balance sheet date and the date the financial statements were approved by the RSPCA Board of Trustees, the RSPCA entered into a 10-year
commitment for the rental of new headquarter premises. The expected commitment value for the 10 years is £1.6m.
25. Pensions
The RSPCA operates a defined benefit pension arrangement called the RSPCA Pension Scheme (the Scheme). The defined benefit section of the Scheme
provides benefits based on salary and length of service on retirement, leaving service or death. The following disclosures exclude any allowance for the
defined contribution section (which was closed over the year to 31 December 2022) or any other pension schemes operated by the RSPCA.
The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every
three years to determine whether the Statutory Funding Objective is met. As part of the process the RSPCA must agree with the trustees of the Scheme
the contributions to be paid to meet any shortfall against the Statutory Funding Objective.
The most recent comprehensive actuarial valuation of the Scheme was carried out as at 31 March 2021 and the next valuation of the Scheme is due as at
31 March 2024. In the event that the valuation reveals a larger deficit than expected the RSPCA may be required to increase contributions above those set
out in the existing Schedule of Contributions. Conversely, if the position is better than expected, it's possible that contributions may be reduced.
The contributions were recently reviewed as part of the 2021 actuarial valuation. The RSPCA expects to pay contributions of around £2m in the year to
31 December 2023 (plus expenses which are met directly).
The Scheme has a trustee board which features an independent trustee. The trustees have responsibility for obtaining valuations of the fund, administering
benefit payments and investing the Scheme's assets. The trustees delegate some of these functions to their professional advisers where appropriate.
There were no plan amendments, curtailments or settlements during the period.
The weighted average duration of the defined benefit obligation is around 15 years.
Principal actuarial assumptions 2022 2021
Discount rate 4.80% p.a. 2.00% p.a.
Inflation (RPI) 3.10% p.a. 3.20% p.a.
Inflation (CPI) 2.80% p.a. 2.90% p.a.
Revaluation of deferred pensions:
Post 09 pension 2.50% p.a. 2.50% p.a.
Pre 09 pension in excess of GMP 2.80% p.a. 2.90% p.a.
GMP Fixed Fixed
Increases for pensions in payment:
GMP accrued before 5 April 1988 Nil Nil
GMP accrued after 5 April 1988 2.30% p.a. 2.35% p.a.
XS pension accrued before 31 March 2008 2.70% p.a. 2.80% p.a.
Pension accrued after 31 March 2008 2.05% p.a. 2.10% p.a.
Post-retirement mortality
S3PA tables with CMI 2021
projections using a long-term
improvement rate of 1.25% pa.
S3PA tables with CMI 2020
projections using a long-term
improvement rate of 1.25% p.a.
Commutation (using current commutation factors)
Members are assumed to
take 25% of their pension
as tax-free cash
Members are assumed to
take 25% of their pension
as tax-free cash
Retirement
All members are assumed
to retire at age 61.5
50% of in-service deferred
members retire at age 60,
and 10% retire at each age
between 61 and 65; deferred
members retire at age 60