THE PRESS ASSOCIATION PENSION FUND (1992)

Transcription

1 CONTENTS Page Trustee and advisers 1 Trustees report 2 Investment report 7 Compliance statement 12 Independent auditors report 13 Fund account 15 Net assets statement 16 Notes to fancial statements 17 Independent auditors statement about contributions 24 Summary of contributions 25 Actuarial certificates 26 Deaths 28

2 TRUSTEE AND ADVISERS Actuarial and vestment advisers Lane Clark & Peacock LLP St Paul s House, St Paul s Hill Trustee PAPF Trustee Limited Wchester, Hampshire, Trustee Directors Appoted by employer: Charles Gregson Steven Turnbull S022 SAB Paul Sellars Fund managers: defed benefit UBS Global Asset Management John Aliwood (UK) Limited Nomated by members: Jim Donnelley Richard Henry 21 Lombard Street London, EC3V 9AH Legal & General Assurance (Pensions Management) Limited 1 Coleman Street Eric Rayner London, EC2R 5AA Secretary to trustee Stephen Godsell (previously Standard Life Investments Limited Richard Marioribanks) Fund admistrator Lane Clark & Peacock LLP Address of trustee, to which Secretary to trustee 1 George Street Edburgh, EH1 2LL St Paul s House, St Paul s Hill Newton Investment Management Wchester, Hampshire, Limited S022 5AB 160 Queen Victoria Street London, EC4V 4LA enquiries for furr formation should Press Association Pension Fund manager: defed contribution Standard Life Assurance Limited be sent Fund (1992) 30 Lothian Road 292 Vauxhall Bridge Road Edburgh, EH1 2DH London, SW1V 1AE address: stephen.godsell Bankers Lloyds 6/7 Park Row Leeds, LS1 1NX Appoted scheme actuary Bob Scott FIA (previously Jonathan Camfield FIA) Lane Clark & Peacock LLP Independent auditors PricewaterhouseCoopers LLP Benson House, 33 Wellgton Street Leeds, LS1 4JP Solicitors CMS Cameron McKenna LLP 160 Aldersgate Street London, EC1A 4DD Pension scheme registration number

3 TRUSTEE S REPORT The trustee presents its annual report for fund for year ended 31 December The report cludes audited fancial statements of fund. Introduction The fund is established under a trust deed and rules. It was set up to provide pensions related to members earngs before retirement, and pensions and lump sum benefits for widows, widowers and dependents. The prcipal employer relation to fund is PA Group Ltd and members of fund are or were employees of PA Group Ltd and its UK subsidiary and associated companies. The fund closed to new members on 30 June 2002 and to future defed benefit accrual on 30 June busess plan accordance with Myners prciples on pension scheme governance. As explaed Compliance Statement on page 12, three of trustee directors are nomated for appotment by fund members. Jim Donnelley reached end of his term of office on 31 December 2013 and, beg eligible, offered himself for nomation for a furr 3year term. There beg no furr nomations, his reappotment as trustee was confirmed on 26 February On 7 March 2014 company advised trustees that it wished to appot Marc Tucker as a trustee place of Gareth Bramall. This change took place on 2 April Revised rules for fund were signed by company and trustees on 29 June 2010 to effect changes and establish a defed contribution section. On 15 May 2014 company advised trustees that it wished to appot Charles Gregson as a trustee place of Rebecca Buck. This change took place on 4 June The fund is contracted to State Second Pension sce 1 July It was contractedout of State Second Pension usg reference scheme test basis between April 1997 and 30 June Contractedout liabilities respect of earlier service are met by guaranteed mimum pensions ( GM Ps ). On 14 March 2015, PA Group Limited, with consent of trustees, appoted a corporate trustee, PAPF Trustee Ltd. The ncurrent trustees, or than Jonathan Grun, who retired, were appoted as directors of corporate trustee. The fund rules were amended to reflect change. On 30 October 2014 John Spencer retired as a trustee. On 1 December 2014 Charles Gregson was appoted as Chairman of trustees. On 9 March 2015 company advised trustees that it wished to appot Steven Turnbull and Paul Sellars as trustees. These changes took place immediately. On 14 of March 2015, as part of change to corporate trustee structure, Jonathan Grun retired as a trustee. Management of fund The names of current directors of trustee ( trustee directors ) are shown on page 1. The trustees met six times durg 2014 to conduct busess. In addition, subcommittees of trustee board met as required but none are permanently established. The trustees annually update a forwardlookg On 22 April 2015 PAPF Trustee Limited wrote to Jonathan Camfield to confirm his replacement by Bob Scott as scheme actuary with effect from that day. On 3 June 20:15 company advised trustee that it wished to appot John Allwood as a trustee director place of Marc Tucker. This change took place immediately. 2

4 Fundg and Security Agreement In 2014 trustees agreed various terms with PA Group ( fundg agreement ) relatg to fundg of and provision of security to scheme. Pursuant to this fundg agreement: an vestment strategy and approach to valuation was agreed; PA Group paid a special contribution of million :o scheme; PA Group made a furr payment of 13 million to a rgfenced scheme escrow bank account (with a furr 10 million 2015); PA Group granted a first charge favour of trustees over its head office buildg at 292 Vauxhall Bridge Road, London, SW1V 1AE; and PA Group paid a 60 million dividend to its shareholders. MeteoGroup disposal PA Group disposed of its MeteoGroup busess on 14 Match 2014 for a total of 158 million. MeteoGroup UK ceased to participate fund on 31 December 2013 and this event triggered an employer debt under Section 75 of Pensions Act 1995 respect of full deficit attributable to MeteoGroup members of fund. This debt was certified by scheme actuary at 720,000 and was paid by MeteoGroup to fund on 16 January on 14 March 2015 PA Group received deferred consideration from disposal of 39 million. Followg discussions with Trustees, PA Group paid 10 million to pension fund escrow account, as agreed under fundg agreement, and paid a 20 million dividend to its shareholders. 3

5 deferred THE PRESS ASSOCIATION PENSION FUND (1992) TRUSTEE S REPORT (contued) Fund values The fund s pooled vestment vehicles grew value by 22.5% year. Defed benefit section Pooled vestment vehicles Annuity contract UK cash held (cludg trade settlements) Defed contribution section Pooled vestment vehicles 5, December 31 December , ,183 Detail of movement fund s vestments is shown vestment report on pages 7 to 11. Investment report 120,750 75, ,416 70, , ,966 4,217 Fund membership Number of members at 1 January ,460 Leavers (17) 17 Retirements (3) (23) 26 Deaths (1) (2) (22) (25) Transfers out Dependants pensions becomg payable Full Commutation Number of members (1) 15 (j.) (1) 15 (1) at 31 December ,448 Analysis of pensions payment: 31 December December 2013 Active Deferred Pensioner members members members nç_spouses Child 0 1 Total members Total Defed benefit section: The nonavc vestments of fund are held for benefit of members as a whole. At end of year fund was partially vested on a maly passive basis with fund managers and partly an annuity contract with an assurance company. Furr details are shown vestment report on pages 7 to 9 which also cludes details of performance of fund s nonannuity vestments. All fund members have defed benefit accrued pension entitlements. Followg closure of fund to future defed benefit accrual, active members of fund now also have defed contribution pension entitlements as welt. Of 692 deferred members of fund, 83 (2013: 67) have defed contribution and defed benefit pension entitlements and 4 are entitled only to GMPs. Defed contribution section: Members funds are held by fund manager Individual vestment policies and vestment decisions are made by each member dividually. Furr details are shown vestment report set out on pages 10 and 11 cludg details of performance of fund s vestments. 4

6 Shortfall THE PRESS ASSOCIATION PENSION FUND (1992) Participatg companies At 31 December 2014 re were three participatg companies: PA Group Ltd, The Press Association Ltd and PA Photos Ltd. The recovery plan aims to elimate shortfall over 1112 years by company payg additional contributions as set out followg table: All employers participate under standard terms of rules except The Press Association Ltd where participation is on condition that Rule ( optior to segregate fund assets participation) shall not apply. event of termation of Year Payment Year Payment m f3.90m m Per annum m Actuarial valuation The next full actuarial valuation is due as at 31 December 2014, at which time recovery plan described above will be reviewed. The last full actuarial valuation of fund was performed by Jonathan Camfield FIA of Lane Clark & Peacock LLP as at 31 December The actuary s formal report on valuation is dated 25 March 2013 and of this is available on request from secretary to trustee. a copy The actuarial valuation as at 31 December 2011 revealed a fundg shortfall (i.e. technical provisions less value of assets) of 37.7m as follows: Assets Amount needed to provide benefits Fundg level Ongog valuation The trustee is subject to a statutory fundg objective as defed Section 222 of Pensions Act 2004 whereby fund should have sufficient and appropriate assets to cover its technical provisions. A recovery plan has been agreed between company and trustee after havg obtaed advice from fund s actuary, to elimate this fundg shortfall. Solvency valuation Em % 65% Additional voluntary contributions defed benefit section Investments held as a result of additional voluntary contributions (AVCs) are separately vested for benefit of dividual members. Those members receive details of ir vestment directly from fund manager. This AVC scheme closed to new members on 5 April 2006 and to furr contributions on 30 June From July 2010, active members can pay AVCs to defed contribution section. Conflicts of terest Conflicts arise from time to time between best terests of fund and those of company. This is highlighted fact that some of trustee directors are also senior executives company. Or conflicts may also exist from time to time, for example arisg from trustee directors also beg members of fund. The trustee recognises tension that this will present on occasions and a formal conflicts policy has been adopted that deals with conduct of trustee busess and all dealgs with fund s professional advisors. 5

7 TRUSTEE S REPORT (contued) Fund advisers The names of fund s professional advisers are set out on page 1. Compliance statement The trustee also has a general responsibility for ensurg that adequate accountg records are kept and for takg such steps as are reasonably open to m to safeguard assets of fund and to prevent and detect fraud and or irregularities, cludg matenance of an appropriate system of ternal control. The law requires trustee to make certa furr disclosures, and se are cluded compliance statement on page 12. Trustee s responsibilities respect of contributions Statement of Trustee s responsibilities Trustee s responsibilities respect of fancial statements The accounts, which are prepared accordance with UK Generally Accepted Accountg Practice, are responsibility of trustee. Pension scheme regulations requires trustee to make available to fund members, beneficiaries and certa or parties, audited fancial statements for each fund year which: show a true and fair view of fancial transactions of fund durg fund year and of amount and disposition at end of fund year of its assets and liabilities, or than liabilities to pay pensions and benefits after end of fund year, and The trustee is responsible under pensions legislation for preparg, and from time to time reviewg and if necessary revisg, a schedule of contributions showg rates of contributions payable towards fund by or on behalf of employer and active members of fund and dates on or before which such contributions are to be paid. The trustee is also responsible for keepg records respect of contributions received respect of any active member of fund and for adoptg riskbased processes to monitor wher contributions that fall due to be paid are paid to fund accordance with schedule of contributions. Where breaches of schedule occur, trustee is required by Pensions Acts 1995 and 2004 to consider makg reports to Pensions Regulator and to members. conta formation specified Schedule to Occupational Pension Schemes (Requirement to obta Audited Accounts and a Statement from Auditor) Regulations The trustee is responsible for supervisg preparation of fancial statements and for agreeg suitable accountg policies, to be applied consistently, makg any estimates and judgements on a prudent and reasonable basis. The trustee is also responsible for makg available certa or formation about fund form of an Annual Report. Approval of trustee s report The trustee s report, vestment report and compliance statement were approved by trustee on 3 June 2015 and trustee s report was signed on ir behalf by: Charles Grebn Trustee Director / 6

8 THE PRESS ASSOCIATION PENSION FUND (1992) INVESTMENT REPORT Year ended 31 December 2014 DEFINED BENEFIT SECTION The trustee is responsible for settg broad strategic objectives of vestment policy. These objectives are set after discussion with ir professional vestment advisor. The fund managers are responsible for implementation of those objectives through daytoday management of vestments The fund managers reports comment on performance of fund. The fund s nonannuity vestments maly comprise pooled vestment vehicles which are managed by UBS Global Asset Management, Legal & General Investment Management, Newton Investment Management and Standard Life Investments. The fee basis for managers is reviewed annually. The trustee receives quarterly reports from fund managers and an annual report fom ir vestment adviser on performance of dividual fund managers. The fund s annwty vestment is secured by a contract with Legal & General Assurance Socie:y Limited. Statement of vestment prciples The trustee has produced a statement of vestment prciples as required by section 35 of Pensions Act A copy of current statement, dated October 2011, is available on request from secretary to trustee at address shown on page 1. The statement covers amongst or thgs: trustee s policies for securg compliance with requirements for diversification and suitability of vestments; trustee s policy as to; risk, expected kd of vestments to be held; balance between different kds of vestments; cludg ways which risks are to be measured and managed; vestment returns; realisation of vestments; and extent to which social, environmental or ethical considerations are to be taken to account. An analysis of fund is shown on pages 8 and 9 toger with details on vestment returns. The valuation method is disclosed note 2 to fancial statements. Custodial arrangements The title documents to UBS Global AM Pooled Funds are registered name of fund. A cash account is mataed with JP Morgan Chase Bank for any vestment fund cash holdgs. The policy documents are currently held by UBS Global Asset Management Client Services Ltd safe condition on its premises. The policy documents for Legal & General Pooled Funds and annuity are also registered name of trustee. The policy document for Newton Investment Management fund is registered with BNY Mellon Asset Management. The assets with Standard Life Investments are held as part of a Trustee Investment Plan with m. 7

9 THE PRESS ASSOCIATION PENSION FUND (1992) INVESTMENT REPORT (contued) DEFINED BENEFIT SECTION (contued) Analysis of vestments UK equities December , December ,319 Overseas equities: United States and Canada Japan Eu to pe AsiaPacific ex. Japan Emergg markets ,006 3,953 9,967 3,755 2, 39,974 16,656 3,851 9,960 3, ,246 Index lked UK dex lked ,701 5,074 Cash and money market struments Annuity contract , ,847 Diversified growth funds ,082 28, , Fund manager UBS Global Asset Management Legat & General Assurance Standard Life Investments Newton Investment Management , , , ,429 55,925 89,264 14,815 13, , ,966 8

10 Analysis of vestment returns Time UBS Equities weighted return (%) Global Asset Management UK North America UK) Europe (ex. Fund 2014 Last Benchmark Fund 3 years (p.a.) Last Benchmark Fund 5 years (p.aj Benchmark Japan Asia Pacific World Cash Total UBS (ex. Japan) Emergg Markets deposits Legal & General Equities UK North America Europe (ex. UK) Japan Asia Pacific World Total portfolio gifts 15 Years 5 Years Cash equity Indexlked Under Over , (ex. Japan) Emergg Markets IndexLked IndexLked 12.8 Gifts Guts deposits Standard Global Life Investments Absolute Returns Strategies * Newton Investment Management Newton Real Return Fund * Total Fund The total Fund return for 2014 and last 3 and 5 years is return (excludg annuity assets) for Press Association Pension Fund (1992). The returns for dividual manager funds are shown to provide longerterm formation as an dication of managers performance. The ception of Fund s vestment with Legal & General was February 2010, with over 5 year dexlked gilt portfolio funded September 2013 and under 15 year dexlked gilt portfolio funded December The ception date for Newton and Standard Life was July 2011, * The benchmark for Standard Life Investment GARS fund is 6month LIBOR. However, stated objective of fund is to outperform benchmark by 5% before fees. The benchmark for Newton Real Return Fund is 1month LIBOR. However, stated objective is to outperform benchmark by 4% before fees. All returns are shown before deduction of fees. 9

11 INVESTMENT REPORT (contued) DEFINED CONTRIBUTION SECTION Investment manager The trustee is responsible for selectg appropriate vestment funds from which members may choose decidg how to vest ir pension benefits. The fund manager reports both to trustee on overall performance of fund and also to dividual members via ir annual benefit statement. Details of vestment funds selected and ir dividual performance, and longer term history, are shown on page 11. Custodia arrangements Havg taken advice, trustee selected Standard Life as ir provider and members can choose from funds listed below. The title documents to Standard Life policy are registered name of trustee. A defed contribution current account is mataed with Lloyds plc and all contributions are paid over to Standard Life via this account. SLI Global Equity Unconstraed Fund BlackRock Aquila Global Equity (50:50) Fund SLI Global Absolute Return Strategies Fund HSBC Life Amanah Pension Fund SL Pension Ethical Fund SL IndexLked Fund SL Pension Corporate Bond Fund SL Pension Mixed Bond Fund SL Pension Managed Cash Fund Governance The trustee has considered Pensions Regulator s code of practice no.13 regardg governance and admistration of occupational defed contribution pension schemes. They ensure that y have appropriate trag and obta advice where necessary to fulfil ir duties. Investment options and performance, member communication and admistration are all kept under review. Members can also choose from a selection of Lifestyle options that are designed to automatically switch vestments to less volatile funds as y approach ir selected normal retirement date. There are Lower Risk, Higher Risk and Cash Lifestyle profiles that members may choose from. All three start with vestments allocated between SLI Global Absolute Return Strategies Fund and BlackRock Aquila Global Equity Fund and over ten years prior to retirement switch to fixed terest and cash, or cash only, holdgs. Furr regulations regardg governance and charge controls apply to defed contribution section of fund from April The trustee is considerg new requirements and implications of new freedom and choice flexibilities that came to force April As part of this trustee s Report for year to 31 December 2015 will clude a new Chairman s Statement. This will expla how fund complies with new requirements. This will also take to account a new code of practice from Pensions Regulator that is expected to be published shortly. For members who prefer not to make any vestment decisions, trustee s default vestment strategy is Lower Risk Lifestyle option with a default target retirement age of

12 Analysis of vestments Standard Life SLI Global Equity Unconstraed Fund BlackRock Managed (50:50) Global Equity Fund SLI Global Absolute Return Strategies Pension Fund HSBC Amanah Zensfon Fund SL Ethical Penson Fund SL IndexLked Bond Fund SL Mixed Bond Pension Fund SL Pension Corporate Bond Fund SL Deposit and Treasury Pension Fund 31 December 2014 % , , , :C 31 December ,963 1, ,004 4,217 Analysis of vestment returns Time weighted return (%) Fund 2014 Benchmark Last 3 years (p.a.) Fund Benchmark Last 5 years (p.a.) Fund Benchmark SLI Global Equity Unconstraed Fund BlackRock Global Equity (50:50) Fund SLI GARS Fund * HSBC Life Amanah Pension Fund SL Pension Ethical Fund SL IndexLked Bond Fund SL Pension Mixed Bond Fund SL Pension Corporate Bond Fund SL Pension Deposit and Treasury Fund The benchmak for SU GARS fund is 6month LIBOR. However, stated objective of fund is to outperform benchmark by 5% before fees. 11

13 COMPLIANCE STATEMENT Year ended 31 December 2014 Fancial development of fund for year The fancial statements for year, which are set out on pages 15 to 23, have been prepared and audited accordance with Occupational Pension Schemes (Requirement to obta Audited Accounts and a Statement from Auditor) Regulations 1996, which were made under sections 41(1) and (6) of Pensions Act Complats procedure The trustee has established a procedure to deal with any complats or disputes which arise relation to fund. The procedure is referred to booklet given to all members when y jo, and full details of it can be obtaed from secretary to trustee when necessary. Copies of fancial statements and furr formation Copies of se fancial statements are sent to active and pensioner members each year, and active members are sent annual statements of benefits. All members receive a copy of annual Summary Fundg Statement. The secretary to trustee can provide furr formation about a member s own pension position, as well as general formation about fund. The secretary to trustee can be contacted at address shown on page 1. Tax status The fund is a registered pension scheme under Chapter 2 Part 4 of Fance Act 2004 (previously fund was an exempt approved scheme for purposes of section 592 of Chapter I of Part XIV of Income and Corporation Taxes Act 1988). To trustee s knowledge, re is no reason why that approval should be prejudiced or withdrawn. Pension creases over past two years, and that paid at 1 January 2015 have been: Year Increase Annual RPI crease from prior December % 3.1% % 2.7% % 1.6% Pensioners who retire a given year receive due proportion of crease followg January. The level of pension due to deferred members at retirement is creased le with requirements of law and rules of fund. No discretionary creases have been granted sce fund began Transfer values One cash equivalent payment (with meang of Chapter IV of Part IV of Pensions Schemes Act 1993) was made durg year to or approved pension arrangements. These were calculated and verified manner prescribed by regulations made under Chapter IV of Pensions Schemes Act No transfer payments were received from or approved pension arrangements and fund is now closed to such transfers. The trustee has directed actuary to calculate factors that exclude any allowance for possible future discretionary benefits, for example pension creases above rate promised rules. Membernomated trustee directors Pension creases The rules of fund provide that all pensions which are course of payment, excludg GMPs for those above state pension age, are reviewed annually as from 1 January. The crease is based on crease Retail Prices Index ( RPI ) over year to previous December, but subject to a maximum crease of S%. Of seven trustee directors whose names are given on page 1 of this report, four are appoted, and can be removed, by board of PA Group Ltd and remader are nomated by active and pensioner members usually for a threeyear term of office. A selection panel drawn from trustee director board, with Lane Clark & Peacock as advisor, makes recommendations to trustee on appotments. The panel makes Its recommendations havg considered all valid nomations and with due regard to current legislation and requirements of fund. 12

14 INDEPENDENT AUDITORS REPORT TO THE TRUSTEE OF THE PRESS ASSOCIATION PENSION FUND (1992) REPORT ON THE FINANCIAL STATEMENTS Our opion RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT Our responsibilities and those of trustee In our opion, The Press Association Pension Fund (1992) s fancial statements: show a true and fair view of fancial transactions of fund durg year ended 31 December 2014, and of amount and disposition at that date of its assets and liabilities, or than liabilities to pay pensions and benefits after end of year; have been properly prepared Generally Accepted Accountg Practice; and conta formation specified accordance with United Kgdom Regulation 3 of, and Schedule to, Occupational Pension Schemes (Requirement to obta Audited Accounts and a Statement from Auditor) Regulations 1996, made under Pensions Act What we have audited As explaed more fully statement of trustee s responsibilities, trustee is responsible for preparation of fancial statements and beg satisfied that y show a true and fair view. Our responsibility is to audit and express an opion on fancial statements accordance with applicable law and International Standards on Ireland) ). Those standards requite Auditg (UK and Ireland) ( ISAs (UK us to comply with Auditg Practices Board s Ethical Standards for Auditors. This report, cludg opion, has been prepared for and only for & trustee as a body accordance with section 41 of Pensions Act 1995 and for no or purpose. We do not, givg this opion, accept or assume responsibility for any or purpose or to any or person to whom this report is shown or to whose hands it may come save where expressly agreed by our prior consent writg. The Press Association Pension Fund (1992) s fancial statements comprise: net assets statement as at 31 December 2014; fund account for year n ended; and notes to fancial statements, which clude a summary of significant accountg policies and ot explanatory formation. The fancial reportg framework that has been applied preparation of fancial statements is applicable law and United Kgdom Accountg Standards (United Kgdom Generally Accepted Accountg Practice). In applyg fancial reportg framework, trustee has made a number of subjective judgements, for example respect of significant accountg estimates. In makg such estimates, y have made assumptions and considered future events. What an audit of fancial statements volves We conducted our audit accordance with ISAs (UK & Ireland). An audit volves obtag evidence about amounts and disclosures fancial statements sufficient to give reasonable assurance that fancial statements are free from material misstatement, wher caused by fraud or error. This cludes an assessment of: wher accountg policies are appropriate to fund s circumstances and have been consistently applied and adequately disclosed; reasonableness of significant accountg estimates made by trustee; and overall presentation of fancial statements. 13

15 INDEPENDENT AUDITORS REPORT TO THE TRUSTEE OF THE PRESS ASSOCIATION PENSION FUND (1992) (contued) We primarily focus our work se areas by assessg trustee s judgements agast available evidence, formg our own judgements, and evaluatg disclosures fancial statements. We test and exame formation, usg samplg and or auditg techniques, to extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obta audit evidence through testg effectiveness of controls, substantive procedures or a combation of both. In addition, we read all fancial and nonfancial formation annual report to identify material consistencies with audited fancial statements and to Identify any formation that is apparently materially correct based on, or materially consistent with, knowledge acquired by us course of performg audit. If we become aware of any apparent material misstatements or consistencies we consider implications for our report. PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Leeds 3 June

16 THE PRESS ASSOCIATION PENSION FUND (1992) FUND ACCOUNT for year ended 31 December 2014 Contributions and benefits Contributions receivable Note Defed Defed 2014 Defed Defed 2013 benefit contribution Total benefit contribution Total 12, ,712 11, ,671 Benefits payable Payments to and on Admistrative expenses account of leavers , , , , , ,559 6, ,640 Net additions from dealgs with members 5, ,153 5, ,031 Returns on vestments Investment come Change Change market value market value of vestments of AVC Investments Investment management expenses ,050 4,050 12, , (71) (71) 4,134 11, (61) 401 4,134 11, (61) Net returns on vestments 16, ,963 15, ,890 Net crease fund durg year Net assets of fund 22, ,116 20,771 1,150 21,921 At 1 January 175,516 4, , ,745 3, ,821 At 31 December 197,794 5, , ,516 4, ,742 15

17 NET ASSETS STATEMENT at 31 December 2014 Note 2014 Defed benefit 2014 Defed contribution 2014 Total 2013 Defed benefit 2013 Defed contribution OOO 2013 Total Investment assets Pooled vestment vehicles Annuity Cash deposits AVC vestments 8 S ,750 75, , ,004 5, ,754 75, ,494 16$ ,187 5, , ,416 4, ,633 70,847 70, ,263 4, , _ 174,490 4, ,707 Current assets Current liabilities , ,175 (508) (508) 1, ,566 (531) (531) Net assets of fund 197,794 5, , ,516 4, ,742 The fancial statements summarise transactions of fund and deal with net assets at disposal of trustee. They do not take account of obligations to pay pensions and benefits which fall due after end of fund year. The actuarial position of fund, which does take account of such obligations, is dealt with trustee s report on page 5 and actuarial certificates on pages 26 to 27 of annual report and se fancial statements should be read conjunction rewith. The fancial statements were approved by trustee on 3 June 2015 and signed on ir behalf by: Charles Gregson Trustee Director 16

18 NOTES TO THE FINANCIAL STATEMENTS 1. BASIS The PREPARATION accounts have been prepared Occupational Accounts and with Practice May OF OF THE ACCOUNTS Pension a from to of (SORP), Fancial of Statement guideles set out 2007). 2. ACCOUNTING The prcipal POLICIES accordance with Audited and Schemes (Requirement Auditor) Regulations 1996 Reports accountg policies, consistently, have been adopted statements. Contributions Normal fancial and contributions statements from on Statement obta Recommended Pension Schemes (revised which preparation employers are have been applied of cluded Additional with augmentations from employers are cluded statements Contributions contributions) are deducted Benefits Benefits payable curred. relation exercised. Transfers with from cluded from pay by When a t:o a accordance to fancial accruals basis. fancial agreement members (cludg additional voluntary y are employers. members member has benefit, benefit Transfer values are accounted fancial statements of a is for choice as schemes have agreed and accepted fund to a are course contributions employer. when cluded of action when accounted for when option when trustee of liability end transferrg members before year transfer can determed reasonable certaty. Expenses All i.e. be expenses are cluded with fund as :he costs are curred, except acquisition cidental cluded to with cost or of disposal proceeds, as appropriate. disposal account of is receivg respect of and where amount for vestment on an expenses an vestment, or deducted of accruals basis, which which from are are Investment come Investment accruals basis, Income is i.e. it is as Valuation of assets Pooled bid price. cluded fancial statements earned rar than when received. vestment vehicles are valued at and offer prices are published, Annuities annuity purchased or, if sgle December 2008 on an closg bid price if priced, closg at both The policy with Legal & is a by view policy to be an of fund s liabilities it be or by of all fund The is by Legal & Value. This is would he policy arisg from policy Is cluded and paid cluded General undertaken cluded fancial statements at surer, as trustee does not effective discharge certa circumstances, trustees for benefit end. Income may surrendered members. General at Premium required to purchase benefits vestment come payments. Or annuity of policies are this annuity pensions specifically allocated identified benefits for particular members effectively discharge trustee s such members refore do been cluded respect of those benefits. These fancial statements at come nor pension payments are recognised statements accordance with SORP. Additional voluntary contributions Additional voluntary contributions 2010 are vested separately benefit of dividual nil (AVC5) by from ma AVCs members. valuation this because, renegotiated annuity valued amount that at year pensions to provision of fund full liability policies and towards have value and neir In fancial members before ]uly defed benefit fund on cluded with are accounted for accruals basis and resultg vestments are net assets statement. for an 17

19 NOTES TO THE FINANCIAL STATEMENTS (contued) 3. CONTRIBUTIONS RECEIVABLE Defed Defed benefit contribution 2C)14 Total 2013 Defed benefit 2013 Defed contribution 2013 Total Employers contributions: Normal Salary sacrifice Employers additional contributions: Deficit ftdg Section 75 debt Payment respect of pension protection fund levies Members normal contributions Members additional voluntary contributions 12, , ,500 11, , ,712 11, ,671 Deficit fundg contributions of 975,000 are payable on each 31 March, 30 June, March 2023 (clusive). 30 September and 31 December between 31 December 2017 and 31 Section 75 debt contributions relate to sale of MeteoGroup UK Ltd. 4. BENEFITS PAYABLE Pensions Lump sum retirement benefits Lump sum death benefits 5,550 5,296 1, , , ,851 5,550 5, , ,999 18

20 Defed Defed 2014 Defed Defed 2013 benefit Contribution Total benefit Contribution Total E OOO 5. PAYMENTS TO AND ON ACCOUNT OF LEAVERS Individual transfers to or funds ADMINISTRATIVE EXPENSES Admis:ration costs Actuarial and vestment consultg fees Legal and or professional fees Audit fees Pension Protection Fund levies Pension Regulator levy Life assurance premiums Trustee liability surance Or costs Except for expenses detailed above, all or admistrative costs are borne by prcipal employer. 7. INVESTMENT INCOME L&G Annuity come Income from pooled vestment vehicles Interest on cash deposits 4, ,050 4, ,050 4, ,134 4, ,134 1 Except for come detailed above, come from pooled vestment vehicles is revested automatically dividual funds and is reflected crease unit price of vestment (see note 8) and forms a part of change market value figure for year. 19

21 NOTES TO THE FINANCIAL. STATEMENTS (contued) 8. INVESTMENT ASSETS Defed benefit section (note 8a) Defed contribution section (note Sb) Value at 1 January ,263 I7 Purchases at cost 15, Sales proceeds (4,800) (209) Change market value 12, , Vatue at 31 December , ,480 16,064 (5,009) 12, ,494 (a) Defed benefit section Value at Change Value at Pooled vestment vehicles Annuity 1 January Purchases Sales market 31 December 2014 at cost proceeds value ,416 15,330 (4,800) 7, ,750 70, , ,263 15,330 (4,800) 12, ,490 The change market value of vestments durg year comprises all creases and decreases market value of vestments held at any time durg year, cludg profits and losses realised on sales of vestments durg year, unrealised changes In market value and come from securities held by pooled vestment vehicles. The pooled vestment vehicles are managed by companies registered UK. The Annuity is stated at a valuation provided by Legal & General. The change market value reflects fact that annuity has paid out a total of 4,046,0C10 year (see note 7) but also cludes any movements arisg from changes underlyg pricg assumptions used by assurance company. In addition to ma annuity policy with Legal and General, fund holds annuity policies respect of benefits payable to five (2013: five) pensioners and ir beneficiaries. A nil value is attached to se policies fund fancial statements as y may not, any circumstances, be surrendered or renegotiated by trustee for benefit of all members. These policies were transferred to fund 2001 from The Press Association Executive Pension Scheme. 20

22 The fund is vested followg pooled vestment vehicles: UBS Global_Asset Management UK equity tracker fund 24,231* 28,603* USA equity tracker fund 15,779* 13,123* Europe ex UK equity tracker fund 7,147 7,140 Japan EJity tracker fund 2,229 2,173 Asia Pacific cx Japan equity tracker fund 3,088 3,007 Global Emergg Markets Equity B 1,864 1,726 54,338 55,772 Legal & General Investment Management UK equity dex fund 3,762 3,716 North America equity dex fund 4,227 3,533 Europe ex UK equity dex fund 2,820 2,820 Japan Equity dex fund 1,724 1,678 Asia Pacific cx Japan dcv equity dex fund World [mergg Markets equity dex Over 5 year dexlked gilts 20,897* 5,074 Over 15 year ndexiked guilts 1,804 36,330 17,867 Standard Life Investments Global Aosolute Returns Strategies 15,653* 14,815* Newton Investment Management Newton Real Return Fund 14,429* 13,962* 120, ,416 * se funds, as well as annuity policy amountg to 75,740,000 as disclosed on page 20, represent more than 5% of value of net assets of Pension Fund 21

23 NOTES TO THE FINANCIAL STATEMENTS (contued) 8. INVESTMENT ASSETS (contued) (b) Defed contribution section Value at 1 January 2014 Standard Life Pooled vestment vehicles 4,217 Purchases at cost, Sales proceeds 20) Change market value 262 Value at 31 December ,004 All defed contribution section vestments are allocated to dividual members. 9. CONCENTRATION OF INVESTMENT The vestment fund is represented by holdgs various vestment vehicles (see note 8). The vestment funds representg mote than 5% of net assets of Pension Fund are disclosed note AVC INVESTMENTS The trustee holds prejuly 2010 defed benefit section AVCs separately from ma fund. These assets I. are nvested only for purposes of securg additional money purchase benefits derived from AVCs, and ii, are specifically allocated to provision of additional benefits for particular members or or persons respect of particular members (or both). Members participatg this arrangement each receive an annual statement confirmg amounts held to ir account and movements year. AVC5 received sce 1 July 2010 have been vested as part of members defed contribution section fund. Standard Life Friends Life Value at Change Value at 1 January Purchases Sales market 31 December 2014 at cost proceeds value 2014 OOO (20) (20)

24 11. INVESTMENT MANAGEMENT EXPENSES Defed Defed 2014 Defed Defed benefit Contribution Total benefit Contribution 2013 Total Admistration, management and custody CURRENT ASSETS Accrued come and prepayments Or debtors Cash balances $ ,016 1, , , ,502 1, ,566 The defed contribution section cash balance of 60,000 is all designated to members 13. CURRENT LIABILITIES Benefits payable Annuity deferred come Portfolio management fees Or creditors and accrued expenses RELATED PARTY TRANSACTIONS The trustee directors are employees or exemployees of PA Group Ltd or its subsidiaries and some pay to fund. The amounts receivable respect of employer and member contributions are shown fund account and are as required by fund rules. Included with benefits payable are pension payments respect of two trustee directors. Admistration costs clude salary of secretary to trustee. All or costs of fund are borne by prcipal employer. 23

25 INDEPENDENT AUDIToRS STATEMENT ABOUT CONTRIBUTIONS TO THE TRUSTEE OF THE PRESS ASSOCIATION PENSION FUND (1992) STATEMENT ABOUT CONTRIBUTIONS Our opion What an examation of summary of contributions volves In our opion, contributions required by schedule of contributions for fund year ended 31 December 2014 as reported The Press Association Pension Fund (1992) s summary of contributions have all material respects been paid accordance with schedules of contributions certified by fund actuary on 25 March 2013 and 10 December What we have examed Our examation volves obtag evidence sufficient to give reasonable assurance that contributions reported summary of contributions have, all material respects, been paid accordance with relevant requirements. This cludes an examation, on a test basis, of evidence relevant to amounts of contributions payable to fund under schedule of contributions and timg of those payments. The Press Association Pension Fund (1992) s summary of contributions for fund year ended 31 December 2014 is set out on followg page. RESPONSIBIUTIES FOR THE STATEMENT ABOUT CONTRIBUTIONS We test and exame formation, usg samplg and or techniques, to extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obta evidence through testg effectiveness of controls, substantive procedures or a combation of both. Our responsibilities and those of trustee As explaed more fully statement of trustee s responsibilities, fund s trustee is responsible for preparg, and from time to time reviewg and if necessary revisg, a schedule of contributions and for monitorg wher contributions are made to fund by employer accordance with relevant requirements. It is our responsibility to provide a statement about contributions and to report our opion to you. PricewaterhouseCoopers LLP Chartered Accounta nts and Statutory Auditors Leeds 3 June 2015 This report, cludg opion, has been prepared for and only for trustee as a body accordance with section 41 of Pensions Act 1995 and for no or purpose. We do not, givg this opion, accept or assume responsibility for any or purpose or to any or person to whom this report is shown or to whose hands it may come save where expressly agreed by our prior consent writg. 24

26 SUMMARY OF CONTRIBUTIONS PAYABLE IN THE YEAR Durg year, contributions payable to fund were as follows: Contributions required by schedules of contributions Employer Member Employer defed defed defed benefit contribution contribution E OOO Norma! contributions Deficit fundg 12,030 Payment respect of Pension Protection Fund levy 42 Total 12, Or contributions payable Additional voluntary contributions 112 Section 75 debt 720 Total (as per Fund Account) 12, The employer defed contribution section normal contributions of 582,000 cludes 245,000 relatg to salary sacrifice contributions. Signed on behalf of trustee on 3 June 2015 by: Charles Gregson Trustee Director 25

27 ACTUARIAL CERTIFICATES INSIGHT CLARITY ADVICE Actitaryc certification of calculation oftechnkatprot isions t) ThIs c.fliflc.i, Ii peovd.d l w 01 ctton 225(1) ot ma PsnsIo,4 Act 2004 and.çu4atton 7(4H ) 01 w OccupaUon.I Penejon Schrm (Sch.m. Funn) egsi.ttoni 2005 N,re il,t,i,r r,esi.ozjllk,n Pemion td (1iI92 C.IetaI ol schnsi p.aioni cet fy ny op on, th cc itic Ff l.chnicet coricns as el 31 9 I, 2011 is mode ccdoe wii eouaions ucr sern 222 l 1hc Pet Ar e c3iciai!cq ue e method end csumptcs delem td by the Trustees o the Cj ari set ou1 I 8tacnn1 at ic ng Pi rcipir. d.yltij ti;trrji 7313 Sqrture. 7t_ L141\A\ D 2, b1rch 2t)13 Nitnr:. t t.bei Quo Iffr.otior rci, of Ilc titu1n und ticijity 1 AIre?lsme of rmfl!oe: cne CIo,l a Peacock LLC S Ptul H Wheste, S022 5A6 26

28 liii.. uiji,. us...., ar,s rrr..41,. 4_L.: 4 t.5 a.:., I,.:2 a 5:.t.4.*.flI J.( ;...._ Xi. 21,.1 li t.. t, ,5,.25 :..._,,..,.. j 5:... _:4a 4441 (Ut1 I44i.t t I....,., a.5_i, _s,l, 5 5,,,...J.* flls 5I5 S4jt4 ttv_ 4*, 4.t4:oIl#j.. p. *n. p. rna, 5445 n a., if , ft. 44. *4, * f3. :1: 54, V s,5,, a.. n. ISV S St. a zip aw :45,,,,,..I I. 4 f: *4, 5, 4s 5.l:,. Xa,....ai.4a; uu.lo 0,(,r,4.csri),,.a sl Ulo.a.iSIlt4eH u, 4*,..1_Ia is, _:4 sii _..545 _ a: i.ir , i.f 14 Ø P di 3 5I , 14 IIfl J,1fl1.,j I t r_ 5., ii t.. I,.....s..,.Jr. V a *1 II I., isv fl 55,i. a s ;; r ;. :.,:. :45 l.:l ii I i..44(/ la dii*i.411.1,jt t III limp 6 SI lull. 4. :)btv 4 St SI :jrr. i,ç.i i u i.i.:)i;j.. it ii l4_llj l5j54 I IP l 55 UI.., S LIla fri,.4.l1i ddl ad] (66T) GNflI NOISNd NOIIVIDOSSV SSid H± I r. : a. ala I i...:j,.ir 4:

29 DEATHS The deaths of followg members were recorded durg 2014 Active_members MrA Baker 64 Deferred members Mr PT Gordon 51 MrCARoberts 39 Penoners MrAAtfield 83 MrFBagnall 75 Mr RH Booker 75 Mr W Clarke 76 Mr] Colgan 100 MrA] Davis 72 Mr M Davis 71 Mr DW Field 69 Mr W Haldane 88 Mn Harris 83 Mrs F Harvey 94 MrS Kirby 90 Mr G Kush 90 Mr W Mart 92 Mr W Mayho $0 MrFMose 77 Mr D) Newton 88 Mn Restalt 63 Mr M Simpks 69 Mr]Ward $7 Mr R Ward 85 pniqrtrszjendants Mr R Weyers 89 28