Financial Statements - International Planned Parenthood Federation

58 IPPF Financial Statements 2009
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 2009
was performed using the Projected
Unit Credit Method with a control
period of 20 years. Under this method
the current service cost will increase
as the members of the Fund approach
retirement. The main assumptions
used in the valuation were:
• Investment return 6.25% per annum
pre retirement and 4.5% per annum
post retirement
• Pension increases in line with RPI
(maximum 5%) – 3.4% per annum
The report for the actuarial valuation
as at 1 July 2009 showed the fund to
have an asset value of $30.937 million
under the ongoing valuation method.
This is equivalent to a funding level
of 64% (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 funding
the current deficit in the scheme over
the next 10 years. A recovery plan will
be submitted to the pension regulator
by 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 $1.516 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 (2008: 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 2009 pension charge for this
scheme is $413,441 (2008: $521,840).
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 2009 pension charge for this
scheme is $440,953 (2008: $496,798).
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 2009 pension charge for this
scheme is $226,784 (2008: $187,551).
At 31 December 2009 there
were no outstanding or prepaid
contributions for any of the
defined contribution schemes.