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City of Glasgow College Annual Report & Accounts 2020-21
CITY OF GLASGOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 12 MONTHS ENDED 31 JULY 2021
23 PENSION COMMITMENTS
Strathclyde Pension Fund (SPF)
Valuation date
Valuation method
Market value of assets
Actuarial assumptions - pre-retirement discount rate
- post retirement discount rate
- salary increase rate
- pension increase rate
Financial Assumptions 31-Jul-20 31-Jul-19
Pension Increase Rate 2.9% 2.2%
Salary Increase Rate 3.6% 3.3%
Discount Rate 1.6% 1.4%
Mortality
Male Female
Current Pensioners 19.8 22.6
Future Pensioners 21.2 24.7
3.3%
£19,699 million
3.7%
The Strathclyde Pension Fund (SPF) is a funded defined benefit scheme and has its assets held
in separate trustee administered funds.
The pension cost is assessed every three years in accordance with the advice of a qualified
independent actuary. The assumptions and other data that have the most significant effect on
the determination of the contribution levels are as follows:
31-Mar-17
Projected Unit
Life expectancy is based on the Fund's VitaCurves with improvements in line with the CMI 2012
model assuming current rates of improvements have peaked and will converge to a long term
rate of 1.5% p.a. for males and 1.25% p.a. for females. Based on these assumptions, average
future life expectancies at age 65 are summarised below:
For the purposes of FRS 102 an actuarial valuation was calculated by the actuary as at 31 July
2020.
The major assumptions used by the actuary and agreed by the College Board were:
3.6%
2.4%