Instem’s DB scheme deficit falls by £2.3m

The Instem defined benefit pension scheme funding deficit decreased by £2.3m in six months, it was revealed in its half-year report.

Instem’s DB deficit fell from £3.8m in December 2017 to £1.5m in June 2018, following gains on the pension scheme assets in excess of interest. The company has set a target of eliminating the funding deficit by November 2023.

The DB scheme deficit also resulted in a £300,000 release of deferred tax asset.

Instem chief financial officer, Nigel Goldsmith explained: “The June calculation incorporated the results of the 2017 triennial valuation that was concluded during this period, combined with a change in revaluation of deferred members' benefits following a move from RPI to CPI.”

The company’s 2017 annual report, published on 23 April 2018, revealed that the value of its DB obligation was £14.55m, up from £14.44m in 2016.

Its liabilities during this period fell by £1m to £3.75m and the value of its assets increased from £9.69m to £10.8m.

Pension contributions by the company are “made up to the executive directors’ personal pension schemes up to a maximum of 16.5 per cent of basic salary”, it said in its annual report.

Instem currently has four active DC schemes and one closed DB scheme, which has been closed to new members since 2001 and to future accrual since the end of 2008. In 2017, Instem’s DC contributions were the same as in 2016: £40,000.

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