COMPANY: Calderdale Carers Project
SCHEME: TPT Retirement Solutions – Career Average Revalued Earnings ("CARE") Pension Scheme
The company participates in the scheme, a multi-employer scheme which provides benefits to some 36 non-associated employers. The scheme is a defined benefit scheme in the UK.
It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2022. This valuation showed assets of £49.6m, liabilities of £57.1m and a deficit of £7.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
From 1 April 2024 to 31 March 2027: £1,672,000 per annum
(payable monthly and increasing by 3.0% each year on 1st April)
Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2019. This valuation showed assets of £79m, liabilities of £93.9m and a deficit of £14.9m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
From 1 April 2021 to 30 September 2027: £1,530,000 per annum
(payable monthly and increasing by 3.0% each year on 1st April)
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
PRESENT VALUES OF PROVISION
30 September 2025 30 September 2024 30 September 2023
(£s) (£s) (£s)
Present value of provision 10,808 17,173 24,828
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
Period Ending Period Ending
30 September 2025 30 September 2024
(£s) (£s)
Provision at start of period 17,173 24,828
Unwinding of the discount factor (interest expense) 644 1,259
Deficit contribution paid (7,122) (6,777)
Remeasurements - impact of any change in assumptions 113 202
Remeasurements - amendments to the contribution schedule - (2,339)
Provision at end of period 10,808 17,173
INCOME AND EXPENDITURE IMPACT
Period Ending Period Ending
30 September 2025 30 September 2024
(£s) (£s)
Interest expense 644 1,259
Remeasurements – impact of any change in assumptions 113 202
Remeasurements – amendments to the contribution schedule - (2,339)
Contributions paid in respect of future service* * *
Costs recognised in income and expenditure account * *
*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.
ASSUMPTIONS
30 September 2025 30 September 2024 30 September 2023
% per annum % per annum % per annum
Rate of discount 3.27 4.82 5.86
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.