THE VAUXHALL & ASSOCIATED COMPANIES PENSION FUND

Transcription

1 Registration Number THE VAUXHALL & ASSOCIATED COMPANIES PENSION FUND Report and Accounts For the Year Ended 31 December 2007

2 C O N T E N T S Trustee and Advisers 1 Report of the Trustee 2-6 Investment Report 6-7 Statement of Trustee s Responsibilities 8 Report of the Actuary 9-10 Schedule of Contributions 11 Independent Auditors Report Fund Account 14 Net Assets Statement 15 Notes to the Financial Statements Independent Auditors Statement about Contributions 21 Summary of Contributions 22 Members Information 23 Appendix: The GM (UK) Common Investment Pool Report & Accounts for the year ended 31 December 2007

3 THE VAUXHALL & ASSOCIATED COMPANIES PENSION FUND TRUSTEE and ADVISERS Participating Company General Motors UK Limited (renamed from Vauxhall Motors Limited 16 April 2008) Trustee GM (U.K.) Pension Trustees Limited Directors of the Trustee Employee Nominated I. Bruce, P. Fildes, J. Kennedy (appointed 1 October 2007), G. Taylor (Vice Chairman), C. Weatherston, C. Elliott (appointed , resigned 1 October 2007), R. Gates, (resigned ) Company Nominated P. Croxford (appointed 1 April 2008), L. Davies, J. Fulcher, M. Johnson, S. Mallows, P. Millward, R. Molyneux (Chairman, appointed 1 December 2007), D. Marnoch (resigned 1 April 2008), K. G. Ward (Chairman, resigned 1 December 2007) Pensioners G. Weaver, A. C. Lines Secretary to the Fund D. P. Mount Actuary G. Thompson Hewitt Associates Limited Registered Auditors PricewaterhouseCoopers LLP Investment Manager GM Investment Trustees Limited Solicitors Slaughter and May LLP Bankers Lloyds TSB Bank Plc Investment Consultants The Frank Russell Company Fund Administration General Motors UK Limited Griffin House, Osborne Road Luton, Bedfordshire LU1 3YT

4 Report of the Trustee for the year ended 31 December 2007 The Trustee of The Vauxhall and Associated Companies Pension Fund (the Fund ) present their annual report together with the investment report, actuarial statements and certificates, summary of contributions and financial statements for the year ended 31 December Key Highlights During the year, the assets of the Fund were slightly ahead of the prior year at 26.1 million with the increase in market value of 1.1 million more than offsetting the net cost of benefits. The Fund s overall investment return for 2007 was 4.7%, the fifth consecutive positive year, but the second half of the year was negative as the impact of the US sub-prime liquidity crisis began to be reflected in the markets. Total scheme membership decreased by 105 to 2,836 members, with deferred members falling by 130 to 2,023 and pensioner members increasing by 25 to 813. Constitution of the Fund The Fund was established under, and governed by a Trust Deed and Rules, as amended. It is a registered pension scheme under the Finance Act The Fund is contracted-out of the Second State Pension (S2P). The Fund is closed to new members and has no members continuing to accrue benefits. The level of contributions to the Fund with effect from the Fund valuation as at 1 January 2007, is determined by agreement between the Trustee of the Fund and the Company, General Motors UK Limited, renamed from Vauxhall Motors Limited on 16 April 2008, (the "Company"), and, in default of agreement, by the Pensions Regulator, in accordance with the requirement of the Pensions Act Subject to certain exceptions, for additional benefits required to be granted by law, the Company is required by the Trust Deed to make good any deficit were the Fund ever to be terminated and the benefits payable will be determined in accordance with the Fund Rules and overriding legislation. Fund Advisers There are written agreements in place between the Trustee and each of the Fund advisers listed on page 1 and also with the Principal Employer. There were no changes in Fund advisers during the year. Management of the Fund The Trustee of the Fund, GM (U.K.) Pension Trustees Limited, was appointed and may be removed by the Company. The Fund rules contain provisions for the appointment and removal of the Trustee. The names of the current Trustee Directors are included on page 1. Mr C. Elliott replaced Mr R Gates as an member nominated Director with effect from 1 June 2007 but resigned on 1 October Mr J Kennedy was appointed a director under the new member-nomination process on 1 October Mr R Molyneux replaced Mr K Ward as a company nominated director and as Chairman, with effect from 1 December On 1 April 2008 Mr D Marnoch resigned and was replaced as a company nominated director by Mr P Croxford. To conform to the provisions of the Pensions Act 2004, all active and eligible pensioner members of the pension Fund have been consulted by individual notices on the appointment of member nominated Trustees. The outcome of the consultation is that 7 members have been appointed as member- nominated trustee directors. The Trustee met on 5 occasions during the year. 2

5 Report of the Trustee for the year ended 31 December 2007 Risk Management The Trustee has overall responsibility for internal controls and risk management. They are committed to identifying, evaluating and managing risk and to implementing and maintaining control procedures to reduce significant risks to an acceptable level. In order to meet this responsibility the Trustee has adopted a risk policy. The objective of this policy is to limit the exposure of the Trustee, and the assets that it is responsible for safeguarding, to business, financial, operational, compliance and other risks where possible. The Trustee has created a Risk Register. The purpose of the Risk Register is: to highlight the scope of risk to which the Fund is exposed from the Trustee s perspective; to rank those risks in terms of likelihood and impact; and to identify management actions that are either currently being taken, or that are believed should be taken, in order to mitigate the identified risks. Trustee Training The Pensions Act 2004 requires trustees to have knowledge and understanding of pensions legislation, investments, the scheme s trust deed and rules, their statement of investment principles, the statement of funding principles and other documentation which sets out administration policy in relation to the scheme. A training log has been established by the Trustee and each director is responsible for reporting to the Fund secretary which module of the Pension Regulator s toolkit they have completed and which additional training programmes they have attended. During the year trustee directors have attended specialist training courses offered by the legal advisors, actuaries, investment manager, custodian and auditor. Actuarial Valuation The Trustee must obtain an actuarial valuation of the Fund at least once every three years, to determine the funding level and to provide the basis for it to agree the Schedule of Contributions with the employer. The last actuarial valuation of the Fund was carried out as at 1 January 2007, using a market-led approach in which the assets are valued at their market value at the date of the valuation, and liabilities are valued using financial assumptions derived from market yields on Fixed Interest and Index-linked Government stock at the valuation date. This was the first valuation since the Pensions Act 2004 introduced new requirements for the funding of Pensions Schemes; the Pensions Regulator has published a new code of practice on funding and guidance on how it will monitor funding discussions. The Pensions Protection Fund (PPF) has also been created and the Fund has now to consider the additional levies as part of its cost structure. The principal assumptions underlying the valuation were: the discount rate on corporate bonds of 5.1% (prior valuation 5.5%), investment return of 6.0% and rate of increase in deferred pensions of 3.1% per annum (prior:2.8%) Pensions in excess of GMP do not receive increases. Mortality assumptions have been raised with a 62 year old male pensioner is now forecast on average to live to 83.7 (prior 80.5) and a 62 year old female pensioner to live to 82.7 (prior 83.2). 3

6 Report of the Trustee for the year ended 31 December 2007 (cont d) At January the market value of the assets of the Fund, excluding AVC s, was 25.6 million. This was sufficient to cover 85% of the benefits that had accrued to members (prior valuation 89%). This is a shortfall of 4.4 million relative to the Technical Provisions, i.e., the levels of assets agreed by the Trustee and the Company as being appropriate to meet member benefits. The actuary is also required to show what the position would be on a solvency basis with assets used to buy annuities from an insurance company and on this basis the statutory estimate of solvency ratio was 65%. A Schedule of Contributions was prepared following completion of the valuation. The Company agreed to continue to contribute to the Fund at an annual rate of 450,000 for the next 8 years to 2015 and to pay any levies required by the Pension Protection Fund. Fund Membership Pensioner members Number at 1 January Add New dependant pensioners 21 Deferred pensions into payment Less Deaths and terminated pensions (23) Pensions commuted (5) (28) Number at 31 December Deferred members Number at 1 January ,153 Less Transfers out to other plans (1) Transfers out to associated GM plans (43) Deaths and terminations (54) Deferred pensions into payment (32) (130) Number at 31 December ,023 Total membership at 31 December ,836 Pension Increases The Fund is required to increase GMP rights accrued after 5 April 1988 once they are in payment. The increase must be in line with the increase in RPI (as measured in September) to a maximum of 3%. In April 2007 the increase was 3%. Transfer Values Cash equivalents paid during the Fund year with respect to transfers have been calculated and verified in the manner prescribed by the Pension Schemes Act 1993 and do not include discretionary benefits. 4

7 Report of the Trustee for the year ended 31 December 2007 (cont d) Review of Financial Development of the Fund The financial statements have been prepared and audited in compliance with regulations made under section 41(1) and (6) Pensions Act Further Information Further details of investment performance are included in the investment report. Requests for additional information about the Fund generally, or queries relating to members' own benefits, should be made to the Fund administrators, whose address appears on page 1 of this report. Further information for members is included in members information at the back of this annual report. Investment Report The Fund participates in The GM (UK) Common Investment Pool ( CIP ) the generic name for ten Pension Fund Pooling Vehicles ( PFPV s) and one Property Unit Trust ( PUT ). The CIP holds investments on behalf of the Fund and is administered by a corporate trustee, GM Investment Trustees Limited ( GMITL ), which appoints independent investment managers to manage the investments. Details of investments and a financial review are set out in the report and financial statements of the CIP which form an integral part hereof. Copies of the Statement of Investment Principles ( SIP ) are available on request from the Fund administrators. Investment Objectives The Trustee wishes to ensure that the Fund can meet its obligations to the beneficiaries while recognising the cost implications to the participating companies of pursuing excessively conservative investment strategies. The Trustee, as part of the process of reviewing the asset allocation in 2007, reviewed the objectives set out in the SIP, in consultation with the Company. These objectives were confirmed as: wishing to maximise long-term returns on investments subject to, in its opinion, an acceptably low likelihood of failing to achieve an ongoing 100% funding level. Asset Allocation It is current policy for an asset/liability study to be conducted on a triennial basis. In 2006 the trustee reviewed the current asset allocation with its investment advisor, amid concerns that the 100% allocation to UK Corporate Bonds was unduly concentrated and no longer appropriate. As a result there was a switch to hedged international bonds and small weightings to UK and International Equities, Property and Alternative Assets. The Asset allocation for the Fund during the year was 5

8 Report of the Trustee for the year ended 31 December 2007 (cont d) Investment Report (cont d) Asset Allocation % UK Equities 5 International Equities 5 UK Corporate Bonds 0 International Hedged Bonds 75 Property 5 Alternative Investments The 10% allocation to alternative investments was delayed awaiting HMRC approval and then appointing investment managers. The initial investment was not made until June 2007 and prior to that date the Corporate Bond allocation (from which the Alternative assets were funded) was 10% higher. The Trustee has signed an investment management agreement with GM Investment Trustees Limited ( GMITL ), the investment trustee of the CIP, covering GMITL s role in controlling the asset allocation for the Fund. An amending agreement has also been signed reflecting this latest asset allocation. As required, additional contributions to the Fund are invested in new units in the various PFPV s or if cash is required to pay pensions or other benefits, units are liquidated from the PFPV s. Wherever possible, GMITL tries to match any transactions with other pension plans in the CIP. Employer-Related Investments At 31 December 2007 the Fund owns within the International Equity and Bond PFPV s 1,500 (2006: 3,000) of shares and bonds issued by General Motors Corporation; this represents less than 0.1% of the Fund value (2006: <0.1%). Custody Appropriate steps have been taken to safeguard the assets of the Fund. Details of the custody arrangements for the majority of the assets which are held in the CIP, are set out in the report and financial statements of the CIP. Documents of title to the other assets of the Fund are held by the Company. Investment Performance During 2007, the Fund s investment strategy produced a positive return of 4.7%, before fees, 0.2% above the benchmark. The three and five year annualised returns were close to the benchmark. 6

9 Report of the Trustee for the year ended 31 December 2007 (cont d) Investment Report (cont d) Total Rates of return for Periods ended 31/12/2007(annualised) 1 year % 3 years % 5 years % Total Rates of return for Periods ended 31/12/2006 (annualised) 1 year % 3 years % 5 years % Fund returns Benchmark Outperformance 0.2 (0.1) - (0.5) - (0.1) Market reports and detailed analysis of the CIP performance are set out in the report and financial statements of the CIP Statement of Trustee's Responsibilities The financial statements are the responsibility of the Trustee. Pension scheme regulations requires the Trustee to make available to scheme members, beneficiaries and certain other parties, audited financial statements for each scheme year which: show a true and fair view, in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), of the financial transactions of the Fund during the Fund year and of the amount and disposition at the end of the Fund year of its assets and liabilities, other than liabilities to pay pensions and benefits after the end of the Fund year, and contain the information specified in the Schedule to the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996, including a statement whether the financial statements have been prepared in accordance with the Statement of Recommended Practice Financial Reports of Pension Schemes. The Trustee has supervised the preparation of the financial statements and has agreed suitable accounting policies, to be applied consistently, making any estimates and judgements on a prudent and reasonable basis. The Trustee is also responsible for making available certain other information about the Fund in the form of an Annual Report. The Trustee is responsible under pensions legislation for ensuring that there is prepared, maintained and from time to time revised a schedule of contributions showing the rates of contributions (other than voluntary contributions) payable towards the scheme by or on behalf of the employer and the active members of the Fund and the dates on or before which such contributions are to be paid. The Trustee is also responsible for keeping records in respect of contributions received in respect of any active member of the Fund and for monitoring whether contributions are made to the Fund by the employer in accordance with the schedule of contributions. Where breaches of the schedule occur, the Trustee is required by the Pensions Acts 1995 and 2004 to consider making reports to the Pensions Regulator and to members. 7

10 Report of the Trustee for the year ended 31 December 2007 (cont d) The Trustee also has a general responsibility for ensuring that adequate accounting records are kept and for taking such steps as are reasonably open to them to safeguard the assets of the Fund and to prevent and detect fraud and other irregularities, including the maintenance of an appropriate system of internal control. Trustee: GM (U.K.) Pension Trustees Limited J Fulcher Director July 2008 G. Taylor Director 8

11 Report of the Actuary ACTUARY S CERTIFICATION OF TECHNICAL PROVISIONS ACTUARIAL CERTIFICATE GIVEN FOR THE PURPOSES OF REGULATION 7(4)(a) OF THE OCCUPATIONAL PENSION SCHEMES (SCHEME FUNDING) REGULATIONS 2005 Name of Plan: The Vauxhall and Associated Companies Pension Fund Calculation of technical provisions I certify that, in my opinion, the calculation of the Plan s technical provisions as at 1 January 2007 is made in accordance with regulations under section 222 of the Pensions Act The calculation uses a method and assumptions determined by the trustees of the Plan and set out in the Statement of Funding Principles dated 9 January Signature: Gerard Thompson Date: 9 January 2008 Name: Gerard Thompson Qualification: Fellow of the Institute of Actuaries Address: Parkside House Ashley Road Epsom Surrey KT18 5BS Name of employer: Hewitt Bacon & Woodrow Ltd 9

12 Report of the Actuary (cont d) ACTUARIAL CERTIFICATION OF THE SCHEDULE OF CONTRIBUTIONS Name of scheme The Vauxhall and Associated Companies Pension Fund Adequacy of rates of contribution 1. I certify that, in my opinion, the rates of contributions shown in this schedule of contributions are such that the statutory funding objective can be expected to be met by the end of the period specified in the recovery plan dated 9 January Adherence to statement of funding principles 2. I hereby certify that, in my opinion, this schedule of contributions is consistent with the Statement of Funding Principles dated 9 January The certification of the adequacy of the rates of contributions for the purpose of securing that the statutory funding objective can be expected to be met is not a certification of their adequacy for the purpose of securing the scheme's liabilities by the purchase of annuities, if the scheme were wound up. Signature: Date: 11 January 2008 Name: Gerard Thompson Qualification: Fellow of the Institute of Actuaries Address: Parkside House Ashley Road Epsom Surrey KT18 5BS Name of employer: Hewitt Bacon & Woodrow Ltd 10

13 Report of the Actuary (cont d) SCHEDULE OF CONTRIBUTIONS FOR THE PERIOD 1 JANUARY 2008 TO 31 DECEMBER 2015 This schedule of contributions has been prepared by the Trustee to satisfy the requirements of Section 227 of the Pensions Act 2004, after obtaining the advice of the Scheme Actuary and after obtaining the agreement of the Company. Employer Contributions In respect of the shortfall in funding in accordance with the recovery plan dated 9 January 2008: Vauxhall Motors Limited will pay 450,000 per annum For a period of eight years, from 1 January 2008 to 31 December 2015 inclusive, paid to the Fund on or before 29 August each year. Expenses In addition to the amounts shown above, in respect of the Pension Protection Fund levy the employers will reimburse the Fund within 2 to 3 months of the Fund paying the PPF levy. Augmentation payments In respect of augmentations granted, the relevant employer will pay additional amounts to cover the cost of benefit augmentations by the end of January in the year following the calendar year during which the augmentations occur. Signed on behalf of Vauxhall Motors Limited Name: Position: J. Fulcher TREASURER Date: 9/1/2008 Note; Vauxhall Motors Limited has been nominated as the employers representative for this purpose. Signed on behalf of the Trustee of the Vauxhall and Associated Companies Pension Fund Name: Position: G. Taylor Vice-Chairman, Trustee Date: 9/1/

14 Independent Auditors Report to the Trustee of The Vauxhall & Associated Companies Pension Fund We have audited the financial statements of The Vauxhall & Associated Companies Pension Fund for the year ended 31 December 2007 which comprise the Fund Account, the Net Assets Statement and the related notes. These financial statements have been prepared under the accounting policies set out therein. Respective responsibilities of Trustee and Auditors The Trustee s responsibilities for obtaining an Annual Report and audited financial statements prepared in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), are set out in the statement of Trustee s responsibilities. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). This report, including the opinion, has been prepared for and only for the Trustee as a body in accordance with Section 41 of the Pensions Act 1995 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. We report to you our opinion as to whether the financial statements give a true and fair view and contain the information required by the relevant legislation. We also report to you if, in our opinion, we have not received all the information and explanations we require for our audit. We read the other information contained in the annual report and consider whether it is consistent with the audited financial statements. This other information comprises the Report of the Trustee, the Summary of Contributions, the Report of the Actuary and Members Information. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information. Basis of Audit Opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by or on behalf of the Trustee in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Fund's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. 12

15 Independent Auditors Report to the Trustee of The Vauxhall & Associated Companies Pension Fund (cont d) Opinion In our opinion: the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the financial transactions of the Fund during the year ended 31 December 2007, and of the amount and disposition at that date of its assets and liabilities, other than the liabilities to pay pensions and benefits after the end of the year, and the financial statements contain the information specified in Regulation 3 of, and the Schedule to, the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations PricewaterhouseCoopers LLP Chartered Accountants and Registered Auditors London July

16 Fund account for the year ended 31 December 2007 Contributions and benefits Notes Year Ended 31 December Year Ended 31 December 2006 '000 Contributions receivable Benefits payable Leavers Administrative expenses ,263 1,146 Net (withdrawals) from dealings with members (680) (696) Returns on investments Change in market value of investments 6 1, Investment management expenses 7 (20) (22) Net returns on investments 1, Net increase in the fund during the year Net assets of the Fund At 1 January 25,687 25,670 At 31 December 26,116 25,687 14

17 Net assets statement as at 31 December 2007 Investments Notes 31 December 2007 ' December 2006 '000 Pooled investment vehicles 6, 8 25,890 25,582 AVC investments ,077 25,776 Current assets Current liabilities 11 (134) (99) Net current assets/ liabilities 39 (89) Net assets of the Fund at 31 December 26,116 25,687 The financial statements on pages 14 to 20 were approved by the Trustee on signed on their behalf by: July 2008 and are The Trustee J Fulcher Director G. Taylor Director 15

18 Notes to the financial statements for the year ended 31 December Accounting policies Basis of preparation The financial statements have been prepared in accordance with the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996, and in accordance with the Statement of Recommended Practice, Financial Reports of Pension Schemes (revised November 2002). The financial statements summarise the transactions of the Fund and deal with the net assets at the disposal of the Trustee. They do not take account of obligations to pay pensions and other benefits in the future. The actuarial position of the Fund, which does take account of such obligations is in the actuarial valuation section of the trustee report on pages 3 and 4, and the report of the actuary is set out on pages 9 to 10 and the financial statements should be read in conjunction with it. The financial statements have been prepared on the accruals basis of accounting. Contributions and benefits Employer normal contributions are paid in accordance with the requirements of the schedule of contributions in force. Contributions and benefits are brought into account on the accruals basis as amounts receivable and payable during the year. Investments Investments in unitised funds represent the Fund's share of the accumulated fund of the ten Pension Fund Pooling Vehicles (PFPV s) and one Property Unit Trust (PUT), collectively known as The GM (UK) Common Investment Pool (CIP), calculated in accordance with the Trust Deed. The unitised funds are valued at mid-price Net Asset Value. Valuation of AVC s with the Prudential Corporation is provided by Prudential and this includes the capital value of policies in payment. Investment income Interest on cash deposits and other investment income have been accounted for on an accruals basis. Administrative expenses The administrative expenses of the Fund are paid by the Fund, but investment and other related expenses are paid by the appropriate PFPV s and are borne by the Fund in proportion to its share therein. Transfers Transfer values represent the capital sums either received in respect of members from other pension schemes of previous employers, or payable to the pension schemes of new employers for members who have left the scheme, in most cases this is when cash is either received or paid. They take account of transfers where the trustees of the receiving scheme have agreed to accept the liabilities in respect of the transferring members before the year-end, and where the amount of the transfer can be determined with reasonable certainty. 16

19 Notes to the financial statements for the year ended 31 December 2007 (cont d) 2. Contributions receivable Employer Normal PPF levy Benefits payable Pensions Commutations and lump sum retirement benefits 8 22 Lump sum death benefits Payments to and on account of leavers Transfers out to General Motors (UK) affiliated pension schemes Individual transfers out to other schemes Administrative expenses General Motors UK Ltd administration charges Other administration and processing charges 7 7 Actuarial fees Audit fees 4 4 Legal and other professional fees Pensions regulator /PPF levy

20 Notes to the financial statements for the year ended 31 December 2007 (cont d) 6. Investments Investments in The GM (UK) Value at Purchases Sales Change in Value at Common Investment Pool at cost proceeds Market value UK Equity PFPV 1, (220) 56 1,222 International Equity PFPV 1,374 - (204) 86 1,256 International Bonds PFPV 19, (589) 1,026 19,559 Property Unit Trust 1,416 - (99) (81) 1,236 Corporate Bonds PFPV 2,381 - (2,351) (29) 1 Alternative Investments PFPV - 2, ,587 Cash PFPV 43 1,534 (1,555) 7 29 Pooled Investment Vehicles 25,582 4,204 (5,018) 1,122 25,890 AVC investments (14) ,776 4,204 (5,032) 1,129 26,077 The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including profits and losses realised on sales of investments during the year and income received and receivable. The adjustment in the cash PFPV, where the unit value remains constant, recognises the interest on cash deposits in the CIP partially offset by payment of certain professional fees. GM Investment Trustees Limited, the operator of the GM (UK) Common Investment Pool, is registered in the UK. 7. Investment management expenses Investment management fees GM Investment Trustees Limited 9 11 Investment consultancy fees 8 8 Performance measurement fees

21 Notes to the financial statements for the year ended 31 December 2007 (cont d) 8. Pooled investment vehicles Units 31 December 2007 Price Value Investment in the PFPVs/PUT comprising the CIP at market value UK Equity PFPV 532, ,221,816 International Equity PFPV 599, ,255,805 International Bonds PFPV 8,740, ,558,632 Property Unit Trust 324, ,235,949 Corporate Bonds PFPV Alternative Investments PFPV 2,531, ,587,325 Cash PFPV 29, ,308 25,889,757 The investment in the CIP represents the Fund s share of each of the pooled funds within the CIP calculated in accordance with the provisions of the Trust Deed. At 31 December 2007 the Fund held 1.19% (2006: 1.21%) of the total investment in the CIP. 9. AVC investments The Trustee holds assets invested separately from the main fund in the form of insurance policies securing additional benefits on a money purchase basis for those members who in the past have elected to pay additional voluntary contributions. Members participating in this arrangement each receive an annual statement as at 31 December confirming the amounts held to their account and the movements in the year. The aggregate amount of AVC investments for deferred members is: Prudential Corporation Current assets Cash balances 3 4 Prepaid expense Pensions Regulator/PPF levies 36 5 Contributions receivable employers Accrued receivable

22 Notes to the financial statements for the year ended 31 December 2007 (cont d) 11. Current liabilities Transfers payable to GM (UK) affiliated pension schemes (49) (21) Pensions and PAYE payable (18) (20) Death benefits payable (1) (6) Accrued expenses (66) (52) (134) (99) 12. Related party transactions All pensions administration cost is incurred by General Motors UK Limited and then recharged to the Fund. Costs include salaries and benefits of the Pension Administration department, including external systems support, allocated costs for office space and overheads, and direct costs of IT equipment, general office systems software and specific mainframe computer database and pension payroll systems. Total cost for 2007 was 61,000 (2006: 59,000) and of this 7,000 (2006: 4,000) was outstanding at year end and included in current liabilities. All internal investment costs are incurred by GM Investment Trustees Limited and recharged to the Fund. Costs include the allocated share of salaries and benefits of the Pension Investment department including costs for office space and overheads, and direct costs of IT equipment, general office systems software. GMITL also incurs costs relating to Investment consultancy, rental of Bloomberg screens, investment accounting and performance measurement for the Fund. Total cost for 2007 was 9,000 (2006: 11,000) and of this 2,000 (2006: 3,000) was outstanding at year end and included in current liabilities. External investment management charges, including custody, investment accounting and performance measurement are all allocated to the Pooled Funds within the Common Investment Pool. 20

23 Independent Auditors Statement about Contributions to the Trustee of The Vauxhall & Associated Companies Pension Fund We have examined the Summary of Contributions to The Vauxhall & Associated Companies Pension Fund for the year ended 31 December 2007 which is set out on the following page. Respective responsibilities of Trustee and Auditors The Trustee s responsibilities for ensuring that there is prepared, maintained and from time to time revised a schedule of contributions are set out in the statement of Trustee s responsibilities. Our responsibility is to provide a statement about contributions to the Fund in accordance with relevant legislation and to report our opinion to you. This report, including the statement about contributions, has been prepared for and only for the Fund s Trustee as a body in accordance with Section 41 of the Pensions Act 1995 and for no other purpose. We do not, in giving this statement, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Basis of statement about contributions We planned and performed our work so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that contributions reported in the attached summary have been paid in accordance with the relevant requirements. For this purpose the work that we carried out included examination, on a test basis, of evidence relevant to the amounts of contributions payable to the Fund and the timing of those payments under the schedule of contributions. Our statement about contributions is required to refer to those breaches of the schedule of contributions which we consider to be material for this statement and which come to our attention in the course of our work. Statement about contributions to the Fund In our opinion, the contributions payable to the Fund required by the schedule of contributions during the year ended 31 December 2007 as reported in the Summary of Contributions on the following page have in all material respects been paid in accordance with the schedule of contributions certified by the Actuary on 2 September PricewaterhouseCoopers LLP Chartered Accountants and Registered Auditors London July

24 Summary of Contributions Payable in the Year During the year ended 31 December 2007, the contributions payable to the Fund by the Employer were as follows: Required by the schedule of contributions Employee Employer Normal contributions Total Other contributions payable PPF Levy contribution Total (as per Fund Account) Signed on behalf of the Trustee: J. Fulcher G. Taylor July

25 Members Information Pensions Tracing Service Contact details for the Pensions Tracing Service, which can help members trace an old pensions scheme that they have lost contact with, are: Pension Tracing Service, Tyneview Park, Whitley Road, Newcastle, NE98 1BA Telephone: The Pensions Advisory Service Any concern connected with the Fund should be referred to Mr D Mount, Pensions Administration Manager, who will try to resolve the problem as quickly as possible. Members and beneficiaries of occupational pension Schemes who have problems concerning their Scheme which are not satisfied by the information or explanation given by the administrators or the Trustees can consult with the Pensions Advisory Service (TPAS). A local TPAS adviser can usually be contacted through a Citizen's Advice Bureau. Alternatively TPAS can be contacted at: 11 Belgrave Road, London SW1V 1RB Telephone: Pensions Ombudsman In cases where a complaint or dispute cannot be resolved, normally after the intervention of TPAS, an application can be made to the Pensions Ombudsman for him to investigate and determine any complaint or dispute of fact or law involving occupational pension Schemes. The address is: 11 Belgrave Road, London SW1V 1RB Telephone: