capital target of
£168 million invested
Pensions
The Group’s contribution to all of
its occupational pension schemes
in the year was a significant £6.1m
(2014: £5.3m). During the year, the
Group enrolled over 1,300 employees
into a new Group Personal Pension
Plan under the government’s
Automatic Enrolment initiative. In
order to reduce operating costs and
cash flow uncertainty and increase
pension benefit consistency across
the Group, on 1 April 2015, the South
Staffordshire section of the final salary
Water Companies Pension Scheme
(WCPS) was closed to future accrual
with active member benefits accrued
up to that date being preserved and
increasing by inflation each year to
retirement with contributions now
being paid into an alternative defined
contribution Group Personal Pension
Plan to provide additional benefits.
The Cambridge Water section of
WCPS was closed to future accrual
in 2010. The Group’s current funding
deficit contributions in respect
of both of its sections of WCPS of
£2.2m per annum plus inflation will
continue to be paid. As at 31 March
2015 the actuarial valuation of the
Group’s final salary pension schemes
(prepared in accordance with FRS 17
for accounting as opposed to funding
purposes) showed a post-tax surplus
of £12.5m (2014: £12.2m).
Principal Risks and Uncertainties
The Group has an established risk
management framework which aims
to ensure that all significant business
and financial risks and uncertainties
that the Group is exposed to
are identified and appropriately
managed. Significant risks and
uncertainties of the Group that are
Annual Report 2015
South Staffs Water AMP 5
1,300+
employees
auto-enrolled
into a new pension plan
required to be managed include, but
are not limited to, health and safety,
water resources and quality, market
reform in addition to product and
service quality. The main financial
risk the Group is exposed to is credit
risk. Further details of financial risks
and the way they are managed are
provided in note 28 to the Financial
Statements. The Board of Directors
believe these risks are appropriately
managed by the Group.
The Strategic Report on pages 4 to 31
is approved on behalf of the Board of
Directors.
A Page
Group Chief Executive
30 July 2015
31