2006 Annual Report - University of Salford

Annual Report &
Financial Statements
Notes to the Accounts
38(b) Greater Manchester Pension Fund (GMPF)
The University participates in the GMPF, which is an externally funded defined benefit pension scheme, which
is contracted out of the State Second Pension, where contributions payable are held in a trust separately from
the University.
The following information is based upon a full actuarial valuation of the fund as at 31 March 2004 updated
to 31 July 2005 and 31 July 2006 and a full actuarial valuation at 31 March 2001 updated 31 July 2004 by a
qualified independent actuary (Hymans Robertson).
31 July 2006 31 July 2005 31 July 2004
Inflation 3.1% 2.8% 2.9%
Rate of increase in salaries 4.6% 4.3% 4.4%
Rate of increase in pensions 3.1% 2.8% 2.9%
Discount rate for liabilities 5.1% 5.0% 5.8%
The assets in the scheme, of which the University’s share is estimated at 0.96% (2004/2005 0.95%, 2003/04
0.98%), and the expected rates of return were:
Value at Value at Value at
31 July 2006 31 July 2005 31 July 2004
£’000 £’000 £’000
Equities 5,515,700 5,043,000 4,190,000
Bonds 1,408,100 1,188,000 1,019,000
Property 794,000 684,000 618,000
Cash 617,300 595,000 359,000
Total Market Value of Assets 8,335,100 7,510,000 6,186,000
Long term Long term Long term
Rate of Return Rate of Return Rate of Return
Expected at Expected at Expected at
31 July 2006 31 July 2005 31 July 2004
Equities 7.7% 7.3% 7.9%
Bonds 4.7% 4.7% 5.4%
Property 5.7% 5.4% 6.7%
Cash 4.8% 4.5% 4.5%
2006 2005 2004
£’000 £’000 £’000
University’s Estimated Asset Share 80,081 71,350 60,602
Present Value of Scheme Liabilities (93,874) (84,431) (72,033)
Present Value of Unfunded Liabilities (4,617) (4,568) (4,252)
Total Value of Liabilities (98,491) (88,999) (76,285)
Deficit in the Scheme (18,410) (17,649) (15,683)
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