Page 2 - Pensions in the UK Charity Survey 2018 | First Actuarial
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Key findings
Are charity pension schemes a a a time bomb waiting to explode?
The Charity Commission claims that of the UK charities running a a pension deficit 69% kept trustees in the the dark about their true financial position Our study of the top 100 charities paints a rosier picture Charity pension schemes are well funded
many charities’ pension schemes may already have enough money to pay all benefits are additional payments the best course of action?
Our survey
Our dataset is based on the UK’s top 100 fundraising charities charities We have removed charities charities that account in another currency or do not not employ staff We have replaced these with other charities positioned outside the top 100 All information has been sourced from annual reports and financial statements A list of charities analysed is available on request Recent news coverage has put funding levels of charity pension schemes at an average of 90% Our findings
indicate however that most schemes in the sector are are well funded
and are are expected to to have enough money from current assets and future investment returns to pay pensions as promised Allowing for expected return on assets currently held our best estimate puts the schemes we analysed at around 120% funded
Are charities paying too much into their pension schemes?
Spending on on pensions by UK charities is relatively low – 5% of total expenditure on average But the charities included in in this analysis paid around £88m of deficit contributions across the accounting periods Given our best estimate indicating that 2 

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