Toshiba Pension & Assurance Scheme Trustee Report to Members for the year to 31March 2008

Transcription

1 ISSUE 2008 Toshiba Pension & Assurance Scheme Trustee Report to Members for the year to 31March 2008 December 2008 Message from the Trustees Inside This Issue Message from the Trustees Scheme Actuary s Report Investment Update Scheme s Advisers Trustee News What to do next? Facts & Figures Useful Contacts Your Feedback We hope that you find this Trustees Report informative and interesting, but If there is anything else you would like to see in future editions, or if you have any comments about this Report or the Pension Scheme in general, please contact the Administration Team by at Toshiba.admin@hewitt.com. The Trustees are pleased to present their yearly Report on the Scheme. During the year ending March 2008, the Trustees have undertaken a review of how they operate and decided to set up a series of committees specialising in topics of concern to the Trustees. These are:- RISK INVESTMENT AUDIT ADMINISTRATION The output from these committees will better enable the Trustees to address potential and real problems more easily and quickly. The Company has continued to pay enhanced contributions throughout the year, following the Plan agreed last year to reduce the deficit of the Scheme. Unfortunately you will all be aware of the recent financial investment downturn which has obviously affected the Scheme s own investments. This poor investment performance will have an impact on the Recovery Plan. The Trustees are preparing for a 3 yearly (1 April 2008) valuation of the assets and liabilities of the Scheme undertaken by the Scheme Actuary. This valuation will accurately identify where we stand on the Recovery Plan, and will open negotiations with the Company on future contributions paid by them into the Scheme. We will communicate with you when the results of the process are completed. At the same time the Trustees and the Company are to review the validity of the current investment plan in the light of changed circumstances. We commend this Report to you. Please ask us any questions that it raises. Dick Jewkes Chairman of Trustees On behalf of the Trustees Dick Jewkes David Northey Gavin Everson George Harris Bob Sharman Sasha Warr Chairman of the Trustee (Pensioner) Board

2 PAGE 2 TRUSTEES NEWSLETTER Scheme Actuary s Report The benefits payable from the Scheme are provided by the contributions paid by the Company and the investment income earned from the funds. The Trustees are responsible for ensuring that sufficient contributions are paid into the Scheme to meet the benefits payable under the Rules. The Trustees are advised by the Scheme Actuary, who recommends the level of contributions to be paid. The Scheme's Advisers Auditor the Scheme Actuary is now working on the next actuarial valuation The Scheme Actuary monitors the amount of money in the Scheme relative to the benefits that must be paid out, both now and in the future, and carries out a full assessment (called an Actuarial Valuation) of the Scheme's finances at least once every three years. The previous formal Actuarial Valuation, which reviewed the position of the Scheme as at 1 April 2005, confirmed that the Scheme's assets were not adequate to fully cover the benefits built up for members. Following the valuation, the Company agreed to a large increase in their contribution rate, plus a cash injection. The Scheme Actuary is now working on the next actuarial valuation which will provide the position of the Scheme as at 1 April The Trustees are having various discussions with the Scheme Actuary to understand and set the necessary assumptions to be used in the calculations. Once the results have been finalised they will be made available to you. Banking. Investment Update Investment Sub-Committee Actuary Amanda Turner FIA Administration Legal Advice The Trustees have created a sub-committee to look at day to day investment issues. The investment sub-committee meets each quarter to discuss the ongoing investment requirements of the Scheme. Some of the Trustees have been appointed to the sub-committee so that they can work more closely with the Scheme s investment advisers and report any recommendations at the main Trustee meetings to enable appropriate investment decisions to be made. Recent Investment News The investment sub-committee has recently undertaken an investment strategy review which included a review of the fund managers. As a result of their recommendations, the Trustees appointed Record Currency Management in May as a new investment manager. Further changes are likely in the near future. Details of the investment returns during the last can be found in the Facts & Figures section. Additional Voluntary Contributions Investment Managers

3 TRUSTEE NEWSLETTER PAGE 3 Trustee News Trustee Changes Following her departure from the Company, Susan Stevens resigned as Trustee on 10 November On behalf of the members of the Scheme, we would like to thank Susan and wish her well in the future. Sasha Warr, has been appointed as a Company Nominated Trustee following Susan's departure. Sasha will bring a wealth of experience to the Trustees due to her background in Human Resources. Trustee Training Background The Pensions Act 2004 requires Trustees to have knowledge and understanding of the laws relating to pensions and trusts, the principles relating to the funding of occupational schemes and the investment of scheme assets. The Pensions Regulator takes Trustee training very seriously and has developed an e-learning program for Trustees. To ensure that your Trustees keep their knowledge up to date, they undergo training throughout the year. Recent Training Update During the year the Trustees have been learning more about the following subjects: Scheme Liability Profile how to best match the Scheme s investments to the benefits payable Scheme Liability Profile how to best match the Scheme s investments to the benefits payable Pensions Regulator Guide to Risk Analysis how the Trustees ought to consider the investment risks before making decisions Conflicts of Interest how to deal with any potential conflicts of interest that may arise for those Trustees who are employed by the company and any conflicts of interest that may exist if the Trustees advisers also carry out work for the Company Governance Issues how to ensure that processes and policies are in place for the Scheme to be managed properly and are reviewed on a regular basis What to do next? Planning for your future has never been more important. Having benefits in the Toshiba Pension & Assurance Scheme is a great start! The following short summary highlights actions you can be taking now to plan your retirement. Review your benefits: are they enough? The Company sends you a benefit statement each year which provides you with the current value of your deferred pension. Dig out any statements you may have from pension arrangements from previous employers to see what benefits they will provide at retirement. Ask the Inland Revenue to provide you with details of your projected State Benefits on retirement. Contact details can be found in the Further Information section. Keep your records up to date Remember to let the Administration Team know if you move house or your personal circumstances change, so they can keep their records fully up to date and provide you with information about your pension benefits. Remember to let us know if you move house so we can keep our records fully up to date You can write or Toshiba Administration Team c/o Hewitt Associates Limited Parkside House Ashley Road Epsom Surrey, KT18 5BS address: Toshiba.admin@hewitt.com

4 PAGE 4 TRUSTEES NEWSLETTER Facts & Figures At a Glance This page summarises some of the information in the Trustees Annual Report and Accounts for the year ended 31 March A copy of the accounts is available on request from the Administration Team. Accounts Summary Contributions & Benefits Company contributions Other Income Year ended 31Mar 08 Year ended 31Mar 07 ( 000) ( 000) 2,852 6, MEMBERSHIP FINAL SALARY PENSIONERS AT 31 MARCH 08 Total (Incoming) 2,852 6,264 Benefits to members 1,891 1,230 Payments to members Other Payments 0 7 Administrative expenses (20) 111 Total (Outgoing) 1,893 1,457 Pensioners at start of 250 New pensioners/spouses 36 Deaths (5) Pensioners at end of 281 Net additions from dealings with members 959 4,808 TOTAL MEMBERSHIP AT 31 MARCH 08 Returns on Investments Investment income Ex-members with preserved pension 1442 Change in market value of investments (5,770) 4,104 Investment management expenses Net Returns on Investments (5,611) 4,203 In summary Value of Scheme at start of year 69,614 60,604 Pensioners 281 Total members at end of 1723 Net (decrease)/increase in the fund during the year (4,652) 9,011 Value of Scheme at end of year 64,962 69,615 Investment returns at 31 March 08 Investments Return Benchmark Investments Return Benchmark Aegon Long Corporate Bonds -4.71% -4.46% Axa Rosenberg US Equities -6.81% UBS UK Select Equity Fund % -7.70% Axa Rosenberg Japan Equities % % UBS Triton Property Fund % % Axa Rosenberg UK Equities -9.45% -7.74% Axa Rosenberg Pacific Basin ex-japan Equities 9.90% 5.36% Axa Rosenberg European Equities -0.73% 2.53%

5 TRUSTEE NEWSLETTER PAGE 5 Further information Trustee Report & Accounts The Trustees publish a formal Report and Accounts document each year that covers some of the items outlined in this report. Ask the Administration Team if you would like a copy of this or a copy of the Actuarial Valuation by the Scheme Actuary. You should also ask the Administration Team if you would like to see the Scheme s Trust Deed and Rules or if you want a further copy of the current Members Booklet. Internal Disputes Resolution If you do have any problems with the Scheme, these can normally be resolved by the Administration Team. If necessary, however, the Trustees have prepared a formal process for dealing with member disputes. Further details of this are available from the Administration Team. You may also be able to obtain assistance from the following external individuals and bodies: The Pensions Advisory Service Ltd (TPAS) TPAS is available to assist members and beneficiaries of the Scheme with difficulties that they may have failed to resolve with the Trustees or Administration Team. The web address The Pensions Ombudsman The Ombudsman has the power to investigate and decide upon complaints and disputes involving occupational pension schemes. He will normally expect to act only when a matter has been referred to TPAS and not satisfactorily concluded. The web address The Register of Occupational and Personal Pension Schemes Details of this Scheme, including a contact address for the Trustees, have been given to the Registrar. The Registrar's main purpose is to provide a tracing service for ex-members of schemes with pension entitlements, and members' dependants, who have lost touch with earlier employers. The web address If you need to contact the Registrar, the telephone number is , or you can write to:- Registrar of Pension Schemes The Occupational Pensions Regulatory Authority P.O. Box 1NN Newcastle Upon Tyne,NE99 1NN State Pension If you would like a forecast of the State Pension payable to you, please contact: The Pension Service RPFT Tyneview Park Newcastle Upon Tyne,NE98 1BA Telephone Number: The web address: