Financial statements - International Planned Parenthood Federation

56 IPPF Financial statements 2012
20 Pension schemes
IPPF operates four pension schemes as described below:
The Central Office defined benefit pension scheme
This is a defined benefit scheme covering full-time staff in the Central Office, London. The assets of the fund are managed by
independent professional investment managers.
The scheme’s assets and liabilities are calculated by professional actuaries. The most recent formal actuarial valuation as at 1 July 2012
was performed using the Defined Accrued Benefit Method. The assumption used reflected the Employer Covenant Strength and the
average term of the liabilities. The main assumptions used in the valuation were:
Deferred Pensioners (average term 25 years)
• Investment return 5.25% per annum pre retirement
• Investment return 4.0% per annum post retirement
• Pension Revaluation before retirement in line with CPI (maximum 5%) – 2.6% per annum
• Pension increases after retirement in line with RPI (maximum 5%) – 3.2% per annum
The report for the actuarial valuation as at 1 July 2012 showed the fund to have an asset value of $40.313 million under the ongoing
valuation method. This is equivalent to a funding level of 73% (market value of assets versus liabilities).
Following the actuarial valuation results at 1 July 2006 a decision was taken to close the scheme to the current members from 1 September 2007.
This followed the earlier decision in September 2003 to close the scheme to new members. A pension strategy was approved in October 2009
which commits IPPF to reducing the pension deficit to zero by 2020. A recovery plan was submitted to the Pensions Regulator in September 2010.
This will require the pension deficit to be paid off by 2020 and require a 3.4% annual increase in payments from the current level of $1.63 million.
From 1 September 2007 the former members of this scheme were offered defined contribution pension arrangements.
The Central Office defined contribution pension scheme
Since 2003, a defined contribution pension scheme has been offered to permanent staff in the Central Office, London.
IPPF contributes 7% of salary (2011: 7%), and it is non-contributory for staff. For staff previously included in the defined benefit
scheme a contribution of 10% of salary is made.
The 2012 pension charge for this scheme is $419,712 (2011: $536,041).
The Western Hemisphere Regional Office pension scheme
Most full-time staff in the Western Hemisphere Regional Office are members of this defined contribution scheme. It is non-contributory
for staff, and IPPF contributes 11.37% of eligible employee compensation.
The 2012 pension charge for this scheme is $529,392 (2011: $475,032).
The overseas staff pension scheme
Most full-time staff in the Africa Regional Office and some members of the Arab World and South Asia Regional Offices are members of
this scheme. It is a defined contribution scheme under which IPPF contributes 12% of basic salary, and is non-contributory for staff.
The 2012 pension charge for this scheme is $194,498 (2011: $270,318).
At 31 December 2012 there were no outstanding or prepaid contributions for any of the defined contribution schemes.
FRS 17 disclosure note
There is one defined benefit pension scheme providing benefits on final pensionable salary, the Central Office pension scheme. The
latest full actuarial valuation of this scheme was carried out at 1 July 2009 and was updated for FRS 17 purposes to 31 December 2012
by a qualified independent actuary.
The pension cost charge for the period represents contributions payable by IPPF to the scheme and were as follows:
2012 2011
$’000 $’000
1,627 1,594
There were no outstanding or prepaid contributions at the year-end (2011: nil).