Registration Number 10000400
GENERAL MOTORS (VML)PENSION PLAN
Report and Financial Statements For the Year Ended 31 December 2018 General Motors (VML) Pension Plan
CONTENTS
Trustee and Advisers I
Trustee’s report 2 - 7
Investment Report 5 -6
Statement of Trustee’s Responsibilities 7
Independent Auditors’ Report 8 - 9
Fund Account 10
Statement of Net Assets Available for Benefits 11
Notes to the Financial Statements 12 - 22
Independent Auditors’ Statement about Contributions 23 Summary of Contributions 24 Report of the Actuary 25
Members’ Information 26
Appendix:
The GM (UK) Common Investment Fund Report & Financial Statements for the year ended 31 December 2018 General Motors (VML) Pension Plan
General Motors (VML)Pension Plan
TRUSTEE AND ADVISERS
Participating Companies General Motors Europe Limited Venue 360 Limited
Trustee GM (U.K.) Pension Trustees Limited
Directors of the Trustee
- Member Nominated C. Weatherston (ViceChairman) I. Bruce (Resigned 24/10/2018) J. Kennedy G. Taylor G. Weaver
- Company Appointed R. Assinder (Chairman) A. Colello C Thexton (Resigned 06/03/2019) M.Gulati J. Seidman (Resigned 24/10/2018) J. Zhou (Appointed06/03/2019) D. Murray (Appointed06/03/2019, Resigned 31/05/2019) D.Zhan (Appointed 06/03/2019)
Secretary to the Plan M.P. McDonald
Actuary S. KellerFIA— Aon Hewitt
Solicitors Slaughter and May LLP EvershedsSutherlandLLP
Independent Auditors PricewaterhouseCoopers LLP
Bankers Lloyds Bank Plc.
Investment Manager GM Investment Trustees Limited
Investment Consultants Lane, Clark &Peacock LLP
Plan Administration General Motors Europe Limited(GMEL”) AW House, 6-8 Stuart Street Luton, Bedfordshire LUI 2S]
Covenant Consultants Penfida Partners LLP
AVC Providers FILPensions Management (‘Fidelity”) Prudential Corporation General Motors (VML)Pension Plan Trustee’s report for the year ended 31 December 2018
The Trustee of the General Motors (VML)Pension Plan (the “Plan) presents its annual report together with the financial statements for the year ended 31 December 2018. Plan changes
In February 2017 itwas announced that PSA Groupe were to purchase General Motors European operations which included Vauxhall Motors Limitedand IBCVehicles Limited.The acquisition was finalised on the 31 July 2017. As part of the purchase PSA Groupe agreed to set up a new defined benefit pension scheme that mirrored the previous scheme. This scheme was named as The Vauxhall Motors Limited2017 Pension Plan. At the same time, to reduce confusion, the previous plan was renamed the General Motors (VML)Pension Plan. Allactive members withinthe General Motors (VML)Pension Plan were made deferred members of that plan and were made active members of the new plan with the exception of a small number of employees who remained with General Motors after the sale. General Motors Europe Limited replaced Vauxhall Motors Limitedand IBC Vehicles Limitedon the sale date as a sponsoring company of the Plan. Plan Advisers
There are written agreements in place between the Trustee and each of the Plan advisers listed on page 1 and also with the principal company — General Motors Europe Limited (the “Company”! “GMEL”). Management of the Plan
The Trustee Directors of the Plan Trustee, GM (U.K.) Pension Trustees Limited (the “Trustee”), are a combination of Company Appointed Trustees and Member Nominated Trustees. The Plan rules contain provisions for the appointment and removal of the Trustee. The GMEL Board of Directors appoint and remove the Company Appointed Trustees. The Member Nominated Trustees are appointed every six years via a ballot of the Plan members. The GMEL Directors can remove these Trustees iftheir conduct is deemed unsuitable to their duties. The names of the current Trustee Directors are included on page 1. On 29 June 2019 GM (U.K.) Pension Trustees Limited was appointed as the Trustee of the General Motors (IBC) Pension Plan in addition to the General Motors (VML)Pension Plan and The General Motors (VACPF) Pension Fund. The Trustee met on 6 occasions during the year.
During 2018, two Trustee Directors, G. Weaver and G. Taylor, received a pension from the Plan. Allother Member Nominated Trustee Directors are deferred members of the Plan. R. Assindet is an active member of the Plan. All other Trustees are not Plan members. Risk Management and Internal Controls 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 which is reviewed regularly. The purpose of the Risk Register is to: • highlight the scope of risk to which the Plan is exposed from the Trustee’s perspective;
• rank those risks in terms of likelihood and impact; and • identify management actions that are either currently being taken, or that are believed should be taken, in order to mitigate the identified risk to an acceptable level. The Trustee is aware of the potential for ‘Pensions Liberation Fraud’ whereby members’ pensions ate transferred, at their request, to bogus pension schemes. The Trustee has put in place additional controls to reduce the risk of pension liberation fraud including providing information on pension liberation fraud to all members who request a pension transfer. Members should be aware that pension liberation fraud is a very real risk and should consider with some scepticism any approaches from companies promoting pension transfers and consider very carefully the potential implications before requesting a transfer.
2 General Motors (VML)Pension Plan Trustee’s Report for the year ended 31 December 2018 (cont’d) Trustee Training The Pensions Act 2004 requires trustees to have knowledge and understanding of pension legislation, investments, the Plan’s trust deed and rules, their statement of investment principles, the statement of funding principles and other documentation that 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 Plan secretary the modules of the Pensions Regulator’s toolkit they have completed and which additional training programmes they have attended. During the year Trustee Directors have attended training courses/events held by the Plan Advisers. Actuarial Valuation Under section 222 of the Pensions Act 2004, every scheme is subject to the Statutory Funding Objective, which is to have sufficient and appropriate assets to cover its technical provisions, which represent the present value of benefits to which members are entitled based on pensionable service to the valuation date. This is assessed at least every 3 years using assumptions agreed between the Trustee and the Company and set out in the Statement of Funding Principles, a copy of which is available to Plan members on request. As required by Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (FRS 102), the financial statements do not include liabilities in respect of promised retirement benefits. The Trustee must obtain an actuarial valuation of the Plan 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 Company. The last actuarial valuation of the Plan was carried out as at 1 January 2017. The results of the valuation form the basis for decisions about contributions to the Plan for future service benefits. The actuary seeks to ascertain ifthe assets currently in the Plan are sufficient to pay the past service benefits that have already accrued. The assumptions used by the actuary are agreed between the Trustee and the Company. Ifthere is a shortfall in the Plan for the past service benefits, the Trustee negotiates with the Company to agree a plan to achieve a fullyfunded status.
The latest valuation as at 1 January 2017 reported a shortfall of just over £950.8m, equal to a funding ratio of 65.7%. On a buy-out basis, the shortfall was measured at £2,604.5m or a funding ratio of 41.2%. The Trustee and the Company agreed that the Company willcontinue to pay normal contributions to the Plan. at the rate of £14.2m per annum, increasing at twice the increase in RPI measured over the year to the previous February up to 10% per annum from 1 January 2017 to 31 July 2017. Increase made in April 2017. The Company will also pay additional deficit contributions of £52.52m per annum, increasing at twice the increase in RPI measured over the year to the previous February up to 10% per annum from 1 January 2017 to 31 July 2017. Increase made in April2017. One off payments of £135m by 31 October 2017 and £38.2m by 31 January 2018 and a contribution of £75m per annum in 2018 were also agreed. The annual contribution was set for 2019 to 2024 at £80m p.a. For employees opting for 1/7Qth accrual the Company has also agreed to contributions at 8% of Pensionable Pay and for those opting for 1/60ths the contributions are 10% of Pensionable Pay. In addition, the Company will continue to pay the annual levy due to the Pension Protection Fund. These arrangements were formalised in a schedule of contributions which the Plan Actuary certified on 30 July 2017 and is shown on page 25. The actuarial method used in the calculation of the technical provisions is the Project Unit Method with a twelve year control period. For the actuarial valuation the assumptions vary depending on when the expected payment is made i.e. they are “term dependent”. As a result all the factors affecting the value of future liabilities such as the discount rate, RPI inflation, CPI inflation, salary increases and pension increases have varied over the period during which the liabilities are expected to arise. The actuary has used a table of assumptions for the factors mentioned above. The principal assumptions underlying the valuation were: the discount rate set at fixed interest gilt yield curve plus 1% p.a, RPI as RPI inflation yield curve less inflation risk premium of 0.25% pa, CPI as RPI less 0.9% pa. Mortality rates ate based on a standard S2PMA table with a scaling factor of 105% for men and a standard S2PFA table with 100% scaling factor for women. Mortality improvements are based on CMI 2016 core projections with a long term improvement rate of 1.5% p.a. for both males and females. Based on the above, the actuary estimated that the Plan will reach fully funded status, on an ongoing basis, in about 9 years ifthe assumptions are met. 3 General Motors (VML)Pension Plan
Trustee’s report for the year ended 31 December 2012 (cont’d)
Actuarial Valuation (cont’d) A funding update as at 1st January 2018 showed that the Plan had a deficit of £538.9m with a funding ratio of approximately 80%. The increase in the funding ratio is mainly due to deficit contributions, positive investment returns and a reduction in liabilities due to the closure to accrual for most members as of 30 July 2017.
The next valuation of the Plan willbe carried out as at 1 January 2020.
Plan Membership Actives Deferred Pensioners Beneficiaries Total
At 1 January 2018 19 7,012 6,015 1,755 14,801
Adjustment to opening 3 (1) - 4 6 Leavers to Deferred (2) 2 - - Transfer out (1) (63) - (64) Retirements (711) 711 - Deaths - (9) (171) (59) (239) Dependants pensions - - 94 94 Childs pension ceased - - - (6) (6)
At31 December2018 19 6,230 6,555 1,788 14,592
Note: Beneficiaries represent spouses and dependants in receipt of pensions.
The adjustment to opening membership numbers results from a combination of data cleansing and changes in business operations during the year.
Pension Increases
For service from 1 January 1992 to 5 April2005, the increase is the lower of 5% or the RPI; for service thereafter the cap is reduced to 2.5%p.a.
The Plan is also 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 CPI (as measured in September) to a maximum of 3%.
The increases paid in excess of the GMP in April 2018 were:
1992 to 2005 service 4.1% Post 2005 service 2.5% The post-88 GMP increase was 3.0%. Transfer Values Following the publishing of regulations on transfer values in April 2008 and the receipt of an insufficiency report from the Plan Actuary, the Trustee decided to reduce transfer values to reflect the underfunding in the Plan and the uncertainty in the covenant of the sponsoring employers. This ended in August 2017 with transfer values now paid in full.
4 General Motors (VML)Pension Plan
Trustee’s report for the year ended 31 December 2018 (cont’d) “SMART” Pensions Members contributions are made under a salary sacrifice plan, known as “SMART”,whereby members’ pay is reduced by the amount of their pension contributions and the contributions are paid to the Plan directly by the Company. Review of Financial Development of the Plan The financial statements have been prepared and audited in accordance with regulations made under sections 41(1) and (6) of the Pensions Act 1995, other than they have not been prepared and audited within 7 months of the Plan’s year end. This is due to administrative delays in the preparation of the annual report and financial statement of The GM (UK) Common Investment Fund.
Further Information Requests for additional information about the Plan generally, or queries relating to members’ own benefits, should be made to the Plan administrator, whose address appears on page 1 of this report. Further information for members is included in members’ information section on page 26. Investment Report
The Plan participates in The GM (UK)Common Investment Fund (“CIF”)the generic name for ten sub funds. The CIF holds investments on behalf of the Plan and is administered by a corporate trustee, GM Investment Trustees Limited ‘GMITL”,which appoints independent investment managers to manage the investments.
The sub fund structure allows individual funds to operate with different investment strategies and each participating fund holds differing percentages of its assets in each asset class. The Trustee has delegated the responsibility for determining the extent to which the investment policy of a given sub fund should take into account social, environmental and ethical factors in the selection, retention and realisation of the investments in that sub fund to GMITL.In making such decisions GMITLis to act in the best financial interests of the Plan considering the Plan Trustee’s policy of exercising the rights, including voting rights attached to its investments, in the best interests of the participating plans.
Details of investments and a financial review are set out in the report and financial statements of the CIF which form an integral part hereof and can be found in the appendix. Investment Objectives
In accordance with section 35 of the Pensions Act 1995, the Trustee has agreed a statement of investment principles (“SIP”).A copy of the SIP can be obtained from the Secretary to the Plan.
The Trustee wishes to ensure that the Plan can meet its obligations to the beneficiaries while recognising the cost implications to the participating companies of pursuing excessively conservative investment strategies. The objectives of the Plan, as set out in the SIP, are defined as:
1. The Plan should be able to meet benefit payments as they fall due 2. The Plan’s funding position (i.e. the value of its assets relative to the assessed value of its liabilities) should achieve and maintain an appropriate level in the long term.
Asset Allocation
Itis current policyfor an asset/liabilitystudy to be conducted on a triennial basis.
The asset allocation for the Plan was revised in 2018. In the asset allocation the assets are split between two classes - Risk Return Assets and Matching Assets. The split commenced at 75% Return Seeking Assets to 25% Matching Assets. The assets will be progressively de-risked by increasing the Matching Assets with a corresponding decrease in the Return Seeking Assets. Triggers points for de-risking have been set by the Trustee in agreement with the Company. In the year the strategic asset allocation has been changed as noted in the table below.
5 General Motors (VML)Pension Plan
Trustee’s report for the year ended 31 December 2018 fcont’d) Asset allocation (cont’d)
Return Seeking Assets 31/12/2017 31/12/2018 Matching Assets 31/12/2017 31/12/2018
International Equities 45.0% 23.5% Corporate Bonds 12.5% 30.5%
Diversified Growth Fund 15.0% 5.0% LDI 12.5% 30.5%
Property 15.0% 10.5%
75.0% 39.0% 25.0% 61.0%
The Trustee has signed an investment management agreement with GMITL, covering GMITL’s role in controlling the asset allocation for the Plan, and aiming to add value through tactical asset allocation.
As required, additional contributions to the Plan are invested in new units in the various sub funds or ifcash is required to pay pensions or other benefits, units are liquidated from the sub funds. Wherever possible, GMITL tries to match any transactions with other pension plans in the CIF to minimise transaction costs. Custody Appropriate steps have been taken to safeguard the assets of the Plan. Details of the custody arrangements for the majority of the assets which are held in the CIF are set out in the report and financial statements of the CIF. Investment Performance The Plan returns are measured against a scheme specific blended return. During 2018, markets were negative and the Plan’s overall return was (0.9)% before fees, an out performance of 0.2% against the benchmark. The three year annualised return of 8.6% was 1.1% above benchmark whilst the five year return was 0.7% above benchmark.
Total Rates of return For Periods ended 31/12/2018 (annualised)
1 year 3 years 5 years % % % Plan returns (0.90) 8.60 7.80 Benchmark (1.10) 7.50 7.10 OuU(under)- performance 0.20 1.10 0.70
A detailed analysis of the CIF performance is set out in the report and financial statements of the CIF. Employer-Related Investments
Employer related investments are disclosed in Note 21 to the Financial Statements.
6 2019
General Motors (VML)Pension Plan
Trustee’s report for the year ended 31 December 2018 (cont’d) Statement of Trustee’s Responsibilities
Trustee’s responsibilities in respect of the financial statements
The financial statements, which are prepared in accordance with United Kingdom Generally Accepted Accounting Practice, includingthe Financial Reporting Standard applicable in the UKand Republic of Ireland (‘FRS 102”),are the responsibility of the Trustee. Pension scheme regulations require, and the Trustee is responsible for ensuring, that those financialstatements:
• show a true and fair view of the financial transactions of the Plan during the Plan year and of the amount and disposition at the end of the Plan year of its assets and liabilities,other than liabilitiesto pay pensions and benefits after the end of the Plan year; and
• contain the informationspecified in Regulation 3Aof the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996, including making a statement whether the financial statements have been prepared in accordance with the relevant financial reporting framework applicable to occupational pension schemes.
Indischarging these responsibilities, the Trustee is responsible for selecting suitable accounting policies, to be applied consistently, making any estimates and judgements on a prudent and reasonable basis, and for the preparation ofthe financial statements on a going concern basis unless it is inappropriate to presume that the Plan willcontinue as a going concern.
The Trustee is also responsible for making available certain other informationabout the Plan in the form of an annual report.
The Trustee also has a general responsibilityfor ensuring that accounting records are kept and for taking such steps as are reasonably open to itto safeguard the assets of the Plan and to prevent and detect fraud and other irregularities, includingthe maintenance of an appropriate system of internal control.
Trustee’s responsibilities in respect of contributions
The Trustee is responsible under pensions legislationfor preparing, and from time to time reviewingand ifnecessary revising,a schedule of contributionsshowing the rates ofcontributions payable to the Plan by oron behalf ofemployers and the active members of the Plan and the dates on or before which such contributions are to be paid.
The Twstee is also responsible for keeping records inrespect of contributionsreceived in respect ofany active member of the Plan and for adopting risk-based processes to monitorwhether contributions that falldue to be paid are paid into the Plan in accordance withthe schedule of contributions.
Where breaches ofthe schedule occur, the Trustee is required bythe Pensions Acts 1995 and 2004 to consider making reports to the Pensions Regulator and to members.
The Trustee’s Report was approved by the Directors of the Trustee (GM (U.K.) Pension Trustees Limited) and signed on its behalf by:
Signature:
Name (Trustee Director):
7 General Motors (VML)Pension Plan
Independent auditors’ report to the Trustee of the General Motors (VML)Pension Plan
Report on the audit of the financial statements Opinion
In out opinion, General Motors (VML)Pension Plan’s financialstatements:
• show a true and fair view of the financial transactions of the Plan during the year ended 31 December 2018, and of the amount and dispositionat that date of its assets and liabilities,other than liabilitiesto pay pensions and benefits after the end of the year;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (UnitedKingdomAccounting Standards comprising FRS 102 The FinancialReporting Standard applicable in the UKand Republic of Ireland”,and applicable law);and
• contain the information specified in Regulation 3A of the Occupational Pension Schemes (Requirement to obtain AuditedAccounts and a Statement from the Auditor)Regulations 1996.
We have audited the financial statements, included in the annual report, which comprise: the statement of net assets available for benefits as at 31 December 2018; the fund account for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing(UK)(‘ISAs (UK)”)and applicable law. Our responsibilities under lSAs (UK)are further described in the Auditors’responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
Independence
We remained independent of the Plan in accordance withthe ethical requirements that are relevant to our audit of the financial statements inthe UK,which includes the FRC’s EthicalStandard, and we have fulfilledour responsibilities in accordance withthese requirements.
Conclusions relating to going concern
lSAs (UK)require us to report to you when:
• the Trustee’s use of the going concern basis of accounting in the preparation of the financialstatements is not appropriate; or
• the Trustee has not disclosed in the financial statements any identifiedmaterial uncertainties that may cast significantdoubt about the Plan’s abilityto continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
We have nothingto report in respect of the above matters.
However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Plan’s abilityto continue as a going concern. For example, the terms on whichthe United Kingdommay withdrawfrom the European Unionare not clear, and itis difficultto evaluate all of the potentialimplicationson the Plan, its operations and other organisations on which itdepends, and the wider economy.
8 Generat Motors (VML) Pension Plan Independent auditors’ report to the Trustee of the General Motors (VML) Pension Plan (cont’d)
Reportingon other information
The other informationcomprises allthe informationinthe annual report other than the financialstatements, our auditors’ report thereon and our auditors’ statement about contributions. The Trustee is responsible for the other information. Our opinion on the financial statements does not cover the other informationand, accordingly, we do not express an audit opinion or any form of assurance thereon.
In connection with our audit of the financialstatements, our responsibilityis to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained inthe audit, or otherwise appears to be materiallymisstated. Ifwe identifyan apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information,we are required to report that fact. We have nothing to report based on these responsibilities.
Responsibilities for the financial statements and the audit
Responsibilities of the Trustee for the financial statements
As explained more fullyin the statement of Trustee’s responsibilities, the Trustee is responsible for ensuring that the financial statements are prepared and for being satisfied that they show a true and fair view. The Trustee is also responsible for such internalcontrol as itdetermines is necessary to enable the preparation of financialstatements that are free from material misstatement, whether due to fraud or error.
Inthe preparation of the financial statements, the Trustee is responsible for assessing the Plan’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to wind up the Plan, or has no realisticalternative but to do so.
Auditors’responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK)willalways detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if,individuallyor inthe aggregate, they could reasonably be expected to influencethe economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities.This description forms part of our auditors’ report.
Use of this report
This report, includingthe opinion, has been prepared for and onlyfor the Trustee as a body in accordance with section 41 ofthe Pensions Act 1995 and for no other purpose. We do not, ingivingthis 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 priorconsent inwriting. Q3pJ
PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors St Albans Date
9 ______
General Motors (VML)Pension Plan Fund account for the year ended 31 December 2018
Notes Year Ended Year Ended 31-Dec-18 31-Dec-17
£‘OOO £000 Contributions and benefits Employer contributions 4 337,635 184,551 Employee contributions 4 95 2,552 Total contributions 337,730 187,103 Transfers in 5 18,895 - Other income 6 7,135 306 363,760 187,409
Benefits 7 108,925 81,981 Payments to and on account of leavers 8 322 - Transfers to other plans 9 15,300 6,825 Administrative expenses 10 4,254 6,806 Other payments 11 - 142 128,801 95,754
Net additions from dealings with members 234,959 91,655
Net returns on investments Investment income 12 174 13 Investment management expenses 13 (78) (107) Change in market value of investments 14 (23,783) 235,431 Net returns on investments (23,687) 235,337
Net increase in the Plan 211,272 326,992
Opening net assets of the Plan 2,216,395 1,889,403
Closing net assets of the Plan 2,427,667 2,216,395
The notes on pages 12 to 22 forman integral part of these financialstatements.
10 General Motors (VML)Pension Plan Statement of Net Assets Available for Benefits as at 31 December 2018
Notes 31-Dec-I 8 31-Dec-17
£‘OOO £‘OOO Investment Assets
Pooled investment vehicles 14,15 2,386,189 2,147,250 AVC investments 17 48,346 67,244
2,434,535 2,214,494
Current assets 18 10,422 7,427 Current liabilities 19 (17,290) (5,526) Net Current Assetsl(Liabilities) (6,868) 1,901
Total net assets available for benefits 2,427,667 2,216,395
The financial statements summarise the transactions of the Plan and deal with the net assets at the disposal of the Trustee. They do not take account of obligations to pay pensions and benefits which falldue after the end of the Plan year. The actuarial position ofthe Plan, which takes intoaccount such obligations, is dealt withinthe Actuarialvaluation on page 3 and these financialstatements should be read in conjunctionwith this report.
The financial statements on pages 10 to 22 were approved by the Trustee on 3).. 2019 and are signed on their behalf by:
The Trustee: GM (U.K.) Pension Trustees Limited
Signature (Trustee Director): Name: ]f)?S
11 General Motors (VML)Pension Plan
Notes to the financial statements for the Year ended 31 December 2018
1. General Information
The Plan was established on 31 July 1988 under, and is governed by, a Trust Deed and Rules, as amended. It is a registered pension scheme under the Finance Act 2004. The Plan was a contracted-out salary related pension arrangement and provides its members with retirement benefits. It ceased to be contracted out with effect from 6 April2016.
The Plan is of the defined benefit type where pensions are determined by earnings levels and length of service. The Plan is contributory and provides retirement and dependants’ pensions. The Plan also provides death benefits, before and after retirement, and discretionary ill-health pensions.
The Plan was closed to new active members from 1 September 2012.
Full members were contracted-out of the State Second Pension; associate members were not contracted-out. Service after 6 April 1997 is contracted out using the “reference scheme test” basis introduced by the Pensions Act 1995 which requires the Plan actuary to certify that the Plan is expected to provide pensions for at least 90% of contributing members, which are at least as good as those under a reference scheme set out in the Pensions Act. Contracting out ceased from 6 April2016.
2. Statement of Compliance
The individualfinancialstatements of General Motors (VML)Pension Plan have been prepared in accordance with the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996, Financial Reporting Standard (FRS) 102- The Financial Reporting Standard applicable inthe UK and Republic of Irelandissued by the Financial Reporting Council(‘FRS 102”)and the guidance set out inthe Statement of Recommended Practice “FinancialReports of Pension Schemes” (revised November 2014) (‘the SORP”).
In June 2018, a revised SORP was issued which is applicable to accounting periods commencing on or after I January 2019. The Trustee does not anticipate that the adoption of the revised SORP willhave a material impact on the financial statements, however itwillrequire certain additions to or amendments of disclosures inthe financial statements.
3. Summary of Accounting Policies Currency The Plan’s functional currency and presentational currency is pounds sterling (GBP). Contributions Regular contributions, both from the members and from the employer, are accounted for as they fall due under the schedule of contributions, the Plan rules and the recommendations of the actuary. Employers’ augmentation contributions are accounted for in accordance with the agreement under which they are paid, or in the absence of such an agreement, when received. Additional voluntary contributions from the members are accounted for in the month deducted from the payroll.
Employers’ deficit funding contributions (normal and additional) are accounted for in accordance with the agreement under which they are being paid or, in the absence of an agreement, on a receipt basis. Employer contributions in respect of the PPF Levy are accounted for as they fall due under the schedule of contributions. Benefits Where members can choose whether to take their benefits as a full pension or as a lump sum with reduced pension, retirement benefits are accounted for on an accruals basis on the later of the date of retirement and the date the option is exercised. Pension payments are made monthly and are accounted for on an accruals basis. Other benefits are accounted for on an accruals basis on the date of death or leaving the Plan as appropriate.
12 General Motors (VML)Pension Plan
Notes to the financial statements for the Year ended 31 December 2018
Summary of Accounting Policies (cont’d)
Transfers to and from other Plans Transfer values represent the capital sums either receivable in respect of members from other pension plans or payable to the pension plans of new employers for members who have left the Plan. They are accounted for on an accruals basis on the date the Trustee of the receiving scheme accepts the liability. The liability normally transfers when a payment is made, unless the trustees of the receiving scheme has agreed to accept the liabilityin advance of receipt of funds. When there are group transfers, where the Trustee has agreed to accept the liabilityprior to the receipt, they are accounted for in accordance with the agreement. Valuation and Classification of Investments Investments in pooled unitised funds represent the Plan’s share of the accumulated fund of the sub funds in which it invests, collectively known as The GM (UK) Common Investment Fund (CIF), calculated in accordance with the Trust Deed. Units held in the unitised funds are valued at the bid price of the units with the exception of property which is valued at mid. The price represents the underlying fair value of the respective investments. The bid offer spread in sub fund units for transaction purposes is arrived at taking into account the value and transaction costs of trading in the underlying investments. The financial statements of the CIF, attached as appendix to these financial statements, contain detailed accounting policies covering the valuation on the underlying investments held in the sub-funds. Valuation of AVC’s with the Prudential Corporation (Prudential”) is provided by Prudential and this includes the capital value of policies in payment, but excludes terminal bonuses.
The AVC funds offered by FIL Pensions Management (Fidelity”) are Unit Trusts & Open Ended Investment Company (OEIC”) funds and have a single price as valued by the investment manager FIL Investment Service (UK) Limited. Unitisation
Units are allocated to each participating scheme in accordance with the individual scheme’s investment strategy. Units are issued and redeemed at prices calculated by GMITLat the month end, prior to the issuance or redemption. Amounts received from, or payments made on behalf of, the participating schemes are, on a monthly basis, used to create of redeem units at the prevailing monthly unit price and recognised as capital contributions to or withdrawals from the CIF. Investment Income Interest on cash deposits and other investment income are accounted for on an accruals basis. Administrative expenses The administrative expenses of the Plan are paid by the Plan and accounted for on an accruals basis. Investment management expenses
AllCIF trustee related expenses, including investment management expenses charged by the CIF trustee to the pension plan in its capacity as the investment manager of the pension plans, have been charged to the CIF.
Acquisitioncosts are included in the purchase cost of investments. Investment and other related expenses of the sub funds are paid by the appropriate sub funds and are borne by the Plan in proportion to its share therein via the change in market value of the sub fund. Investment management expenses are accounted for on an accruals basis.
13 General Motors (VML) Pension Plan Notes to the financial statements for the Year ended 31 December 2018 fcont’d)
4 Contributions 2018 2017 £‘OOO £000 Employer contributions Regular 312 4,588 Deficit 334,389 173,580 Sale of BrachelToddington/Chaul End 449 Other 2 Augmentations 980 PPF Levy 2,934 4,952 337,635 184,551 Employee contributions Regular 10 74 Additional voluntary contributions 85 2,478 95 2,552 Total 337,730 187,103
The contributions for 2017 have been reclassified to aid the reader of the statements.
Deficitcontributions are being made by the employer untilDecember 2025 on the advice of the Plan’s actuary. A one off deficitpayments of£38.242m was due by 31 January 2018. Inaddition deficitpayments of £75m p.a. by 31 December2018 and £80m pa. foreach year from 2019 to 2024 are due. The Trustee and Company have agreed that a transfer of excess funds, due to a Buyout,from The General Motors Retirees Pension Plan of£18.855m (Note 5) could be used to offset some of the 2018 deficitcontributions.
In 2018 the Company paid the deficit contributions in advance for the years 2019, 2020 and 2021.
Members’ contributions are made under a salary sacrifice plan, known as “SMART”, whereby members’ pay is reduced by the amount of their pension contributions and the contributions are paid to the Plan directly by the Company.
5 Transfers in 2018 2017 £‘OOO £‘OOO
Transfers in from General Motors (UK) affiliated pension schemes (The General Motors Retirees Pension Plan) 18,855 Individual transfers in from other schemes 40 18,895 - 6 Other income 2018 2017 £‘OOO £‘OOO
Miscellaneous income 7,135 - Insurance claims on death receivable - 306 7,135 306
Miscellaneous income is augmentation contributions made by the PSA Groupe for members retiring from the scheme with enhanced pensions.
14 General Motors (VML) Pension Plan
Notes to the financial statements for the Year ended 31 December 2018 (cont’d)
7 Benefits 2018 2017 £000 £000
Pensions 83,641 73,903 Commutations and lump sum retirement benefits 25,187 7,140 Lump sum death benefits 97 938 108,925 81,981
Note: Pensions includes £3.5m for back payment due of GMP Equalisation costs and are also reflected in Current Liabilities.
8 Payments to and on account of leavers 2018 2017 £000 £000
Refunds to members leaving service 322 322 -
9 Transfers to other plans 2018 2017 £‘OOO £‘OOO
Individual transfers out to other plans 15,300 6,825 15,300 6,825
10 Administrative expenses 2018 2017 £‘OOO £000
GMEL administration charges 464 276 Other administration and processing charges 5 4 Actuarial fees 129 352 Audit fees 16 14 Legal and other professional fees 165 952 Pensions Regulator /PPF levy 3,475 5,205 Miscellaneous expenses - 3 4,254 6,806
GMEL administration charge is based on Plan membership out of total plan group membership.
15 General Motors (VML)Pension Plan
Notes to the financial statements for the Year ended 31 December 2018 (cont’d)
11 Other payments 2018 2017 £‘OOO £000
Term Insurance - 142 - 142
12 Investment income 2018 2017 £‘OOO £000
Interest on cash deposits 174 13 174 13
13 Investment management expenses 201$ 2017 £‘OOO £000
Investment consultancy fees 78 107 78 107
14 Reconciliation of net investments Change in Value at Purchases Sales Market Value at 01.01.18 at cost Proceeds Value 31.12.18 £‘OOO £‘OOO £‘OOO £000 £‘OOO Investments in The GM (UK) Common Investment Fund Pooled Funds - Bonds Corporate Bonds Sub Fund 370,492 380,225 - (17,200) 733,517 Pooled Funds - Equities International Equity Sub Fund 883,276 650 (321,347) (28,271) 534,308 Pooled Funds - LDI VMLPP LDISub Fund 378,109 384,050 - 7,518 769,677 Pooled Funds - Other Alternative Investments Sub Eund 80 - (302) 222 - Diversified Growth Sub Fund 275,110 87 (146,200) (11,938) 117,059 Property Sub Fund 239,814 4,398 (30,658) 17,615 231,169 Cash Sub Fund 369 331,602 (331,456) (56) 459 Pooled investment vehicles 2,147,250 1,101,012 (829,963) (32,110) 2,386,189 AVCs - Prudential 51,530 642 (24,725) 8,999 36,446 AVCs - Fidelity 15,714 65 (3,207) (672) 11,900 AVC Investments 67,244 707 (27,932) 8,327 48,346 2,214,494 1,101,719 (857,895) (23,783) 2,434,535
16 General Motors (VML)Pension Plan Notes to the financial statements for the Year ended 31 December 2018 (cont’d)
14 Reconciliation of net investments (cont’d)
The movement in purchase and sales of investments in the year have been impacted by the strategic re-positioning of the assets between various asset classes. Further details of this transition are set out in the annual report and financial statements of the CIF.
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 investment income received and receivable. The change in market value in the cash sub fund, where the unit value remains constant at £1, recognises the interest on cash deposits in the CIF offset by payment of investment management and other fees.
GM Investment Trustees Limited, the operator of The GM (UK) Common Investment Fund, is registered in the UK.
The investment in the CIF represents the Plan’s share of each of the pooled funds within the CIF calculated in accordance with the provisions of the CIF Trust Deed. Units held in the unitised funds at 31 December 2018 are valued at bid price of the sub fund except the Property sub fund which is valued on a NAV basis. The bid offer spread in sub fund units is arrived at taking into account the value and transaction costs of trading in the underlying investments. At 31 December2018 the Plan held 83.80% (2017: 82.30%) of the total aggregate investment in the CIF.
The financial statements of the CIF in the appendix set out details of the Plan’s investments as at3l December2018 and include details of the underlying holdings within the CIF sub funds.
At 31 December 2018 and 31 December 2017 the following investment holdings represented more than 5% of the net assets of the Plan. 2018 2018 2017 2017 Value Holding Value Holding Fund £‘OOO % £000 International Equity Sub Fund 534,308 22.0 883,276 39.9 VMLPP LDISub Fund 769,677 31.7 378,109 17.1 Corporate Bonds Sub Fund 733,517 30.2 370,492 16.7 Property Sub Fund 231,169 9.5 239,814 10.8
15 Fair Value of Investments
FRS 102 requires the uses of the followinghierarchy for the purposes of estimating and disclosing the fairvalue of investments.
Level 1: The unadjusted quoted price inan active market for identicalassets or liabilitiesthat the entitycan access at the measurement date.
Level 2: Inputs other than quoted prices included withinLevel 1 that are observable (i.e. developed using market data) for the asset or liability,either directlyor indirectly.
Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
Since the Plan is invested inthe units of individualsub funds of the CIF, the sub fund units have been deemed to be the unitof account forfairvalue hierarchy. The asset levellingof the sub fund units reflects the marketabilityofthe underlying investments as shown in the fairvalue hierarchy of the CIF financial statements, which are attached as an appendix to this document. The Property Sub Fund has a level 3 designation due to the timescale ofa sale and the probable reduction in value for a quick sale. The Alternative Sub Fund is level 3 as these funds can have trading dates that are over one month apart. Prudential are designated level 3 due to the time required to process the ‘withprofits’element.
17 General Motors (VML)Pension Plan
Notes to the financial statements for the Year ended 31 December 2018 (cont’d) 15 Fair Value of Investments (cont’d)
31-Dec-I 8 LEVEL 1 2 3 Total Pooled Investment Vehicles £000 £000 £‘OOO £000 Pooled Funds - Bonds - The Corporate Bonds Sub Fund - 733,517 - 733,517 Pooled Funds - Equities - The International Equities Sub Fund - 534,308 - 534,308 Pooled Funds - LDI - The VMLPP LDISub Fund - 769,677 - 769,677 Pooled Funds - Other - The Alternative Investments Sub Fund - The Diversified Growth Sub Fund 117,059 - 117,059 - The Property Sub Fund 231,169 231,169 - The Cash Sub Fund - 459 - 459 Total Pooled Investment Vehicles - 2,155,020 231,169 2.386.189 AVC Investments - Prudential - - 36,446 36,446 - Fidelity - 11,900 - 11,900 Total AVC Investments - 11,900 36,446 48,346 TOTAL INVESTMENTS - 2,166,919 267,615 2,434,535
31-Dec-17 LEVEL 1 2 3 Total Pooled Investment Vehicles £000 £000 £000 £000 Pooled Funds - Bonds - The Corporate Bonds Sub Fund - 370,492 - 370,492 Pooled Funds - Equities - The International Equities Sub Fund - 883,276 - 883,276 Pooled Funds - LDI - The VMLPP LDISub Fund - 378,109 - 378,109 Pooled Funds - Other - The Alternative Investments Sub Fund - - 80 80 - The Diversified Growth Sub Fund - 275,110 - 275,110 - The Property Sub Fund - - 239,814 239,814 - The Cash Sub Fund - 369 - 369 Total Pooled Investment Vehicles - 1,907,356 239,894 2,147,250 AVC Investments - Prudential - - 51,530 51,530 - Fidelity - 15,714 - 15,714 Total AVG Investments - 15,714 51,530 67,244 TOTAL INVESTMENTS - 1,923,070 291,424 2,214,494
18 General Motors (VML)Pension Plan Notes to the financial statements for the Year ended 31 December 2018 (cont’d)
16 Investment Risks
Types of risk relating to investments
FRS 102 requires the disclosure of informationin relation to certain investment risks.
Credit risk: this is the risk that one partyto a financial instrument willcause a financial loss for the other party by failing to discharge an obligation.
Marketrisk: this comprises currency risk, interest rate risk and other pricerisk.
• Currency risk: this is the risk that the fair value or future cash flows of a financial asset willfluctuate because of changes in foreign exchange rates.
• Interest rate risk: this is the risk that the fair value or future cash flows of a financial asset willfluctuate because of changes in market interest rates.
• Other price risk: this is the risk that the fair value or future cash flows of a financial asset willfluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.
Although the Plan is invested insub fund units the Trustee, whileconsidering the Risk Table, has taken intoaccount the exposure to the various risks in the underlying investments. In that regard the Risk Table of the Plan reflects similar informationas provided in the CIF financial statement, which is attached as an appendix to this document. The Trustee manages investment risks, includingcredit risk and market risk,withinagreed risk limitswhich are set taking into account the Plan’s strategic investment objectives. These investment objectives and risk limits are implemented through the investment management agreements in place withGMITL(the Plan’s investment manager) and monitored by the Trustee by regular reviews of the investment portfolio.
Inorder to performtheir duties towards monitoringinvestment performance and investment riskthe Trustee of the General Motors (VACPF) Pension Fund and the General Motors (VML)Pension Plan have formed a ‘Joint Investment Sub Committee’. The remit of this sub-committee is to monitor investment performance and investment risk on an on-going basis and in this regard they met regularly during the financial year. In performing its duties towards monitoring and managing investment risk the Trustee of each pension plan also takes advice from their investment consultant. Regular communication and close co-ordination with its investment manager (GMITL)ensures that there is a close control over investment risk.
Inthe Risk Table: ‘H’represents ‘HighRisk’,‘M’represents ‘MediumRisk’,‘L’represents ‘LowRisk’and ‘N/A’represents a situation where a type of risk is not ‘NotApplicable’to the investment concerned.
19 General Motors (VML)Pension Plan
Notes to the financial statements for the Year ended 31 December 2018 (cont’d)
16 Investment Risks (cont’d)
The followingtable summarises the extent to which the various classes of investments are affected by risks.
Investment Risks Table
Type of Risk Credit Currency Interest Price £‘OOO Value Value 2018 2017 £‘OOO £000
Pooled Funds - Bonds 733,517 370,492 Corporate Bonds Sub Fund M L M L 733,517
Pooled Funds - Equities 534,308 883,276 International Equities Sub Fund L M L H 534,308
Pooled Funds - LDI 769,677 378,109 VMLPP LDISub Fund L L M L 769,677
Pooled Funds - Other 348,687 515,373 Alternative Investments Sub Fund L L L M Diversified Growth Sub Fund L L L M 117,059 Property Sub Fund L L M M 231,169 Cash Sub Fund L L L L 459
AVC Funds 48,346 67,244 - Prudential M M N/A H 36,446 - Fidelity M M N/A H 11,900
Total Investments 2,434,535 2,214,494
20 ______
General Motors (VML)Pension Plan Notes to the financial statements for the Year ended 31 December 2018 (cont’d)
17 AVC investments
The aggregate amount of AVC investment is as follows:
2018 2017 £‘OOO £000
Prudential Corporation (with profits fund) 36,446 51,530 FIL Pensions Management “Fidelity”(unitised funds) 11,900 15,714 48,346 67,244
The Trustee holds assets invested separately from the main fund in the form of insurance policies from Prudential Corporation or unit linked funds from FIL Pensions Management, securing additional benefits on a money purchase basis for those members electing to pay additional voluntary contributions. Members participating in this arrangement each receive an annual statement made up to 31 December confirming the amounts held to their account and the movements in the year.
18 Current assets 2018 2017 £‘OOO £000
Contributions receivable — employers 3 3 Contributions receivable — employees I I Prepaid expense — PPF/Regulator/admin fees 862 1,369 Cash balances 9,556 5,918 Accrued Receivables - 136 10,422 7,427
Contributions were paid in fullto the Plan in accordance with the Schedule of Contributions.
19 Current liabilities 2018 2017 £‘OOO £000
Pensions and PAYE payable 4,424 824 Lump sums payable 155 2,370 Death benefits payable 52 41 Transfers payable 1,963 1,842 Accrued expenses 87 449 PPF Future Expense 9,900 - Employer Contributions in advance 709 - 17,290 5,526
The Company has paid an estimate of the PPF Levy in advance for three years ie 2019-20, 2020-2 1 and 2021- 22. This is shown as PPF Future Expense in the current liabilities note.
Pensions payable includes £ 3.5m of backdated pensions payable following GMP equalisation. This number is an overall estimate calculated by the actuary not a member by member calculation.
21 General Motors (VML)Pension Plan
Notes to the financial statements for the Year ended 31 December 2018 (cont’d)
20 Related party transactions
All pensions administration cost is incurred by General Motors Europe Limited and then recharged to the Plan. 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 2018 was £464,000 (2017: £276,000) (note 10). There was an overpayment of £119,000 for the year which is included in current assets. This overpayment willbe offset against the 2019 GMEL Administration fee payment.
The investment funds of the General Motors (VML)Pension Plan are held in the CIF. Alltrustee related expenses, including investment management expenses charged by the trustee to the Plan in its capacity as the investment manager of the pension plans, have been charged to the CIF.
External investment management charges, including custody, investment accounting and performance measurement are all allocated to the pooled funds within the CIF.
Two Trustee Directors received a pension from the Plan during 2018 (2017: two). Four trustees are not members of the Plan. One trustee is an active member. Allother trustees of the Plan are deferred members.
Certain trustees are paid a nominal sum for attendance at meetings; and all trustees are reimbursed for reasonable travelling and subsistence expenses.
21 Employer related investments
As at 31 December 2018 the Plan held an investment in General Motors Company through its holdings in the International Equities and the DGF Sub Funds. This represented 0.01% of the net assets of the Plan (2017: 0.01%).
22 Contingent Assets I Liabilities I Commitments
The Plan had no contingent assets or liabilities or contractual commitments as at 31 December 2018 (2017: nil).
23 Subsequent Events
There are no subsequent events to report
22 General Motors (VML)Pension Plan
Independent auditors’ statement about contributions to the Trustee of the General Motors (VML) Pension Plan
Statement about contributions Opinion
In our opinion, the contributions required by the schedule of contributions for the Plan year ended 31 December 2018 as reported in General Motors (VML)Pension Plan’s summary of contributions have, in all material respects, been paid in accordance with the schedule of contributions certified by the Plan actuary on 30 July 2017.
We have examined General Motors fVML)Pension Plan’s summary of contributionsforthe Plan year ended 31 December 2018 which is set out on the followingpage.
Basis for opinion
Our examination involves obtaining evidence sufficient to give reasonable assurance that contributions reported in the summary of contributions have, in all material respects, been paid in accordance with the relevant requirements. This includes an examination, on a test basis, of evidence relevant to the amounts of contributions payable to the Plan under the schedules of contributions and the timingof those payments.
Responsibilities for the statement about contributions
Responsibilities of the Trustee in respect of contributions
As explained more fullyinthe statement of Trustee’s responsibilities,the Plan’s Trustee is responsible for preparing, and from time to time reviewingand ifnecessary revising, a schedule of contributions and for monitoringwhether contributions are made to the Plan by employers in accordance with relevant requirements.
Auditors’responsibilities in respect of the statement about contributions
Itis our responsibilityto provide a statement about contributions and to report our opinion to you.
Use of this report
This report, includingthe 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 givingthis opinion, acceptor assume responsibilityfor 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 priorconsent in writing.
PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors St Albans Date
23 General Motors (VML)Pension Plan
Summary of Contributions
During the year ended 31 December 2018, the contributions payable to the Plan by the Employer and Employee were as follows:
Summary of Contributions Payable in the year
Employee Employer £‘OOO £‘OOO Required by the schedule of contributions
Regular 10 312
Deficit 94,389
PPF Levy contribution - 2,934
Total 10 97,635
Amounts not required by the schedule of contributions
Deficitfunding contributions 240,000 AVCs 85 -
Total (as per Fund Account) 95 337,635
The Summary of Contributions was approved by the Directors of the Trustee (GM (U.K.) Pension Trustees Limited) and signed on its behalf by:
Signature:
Name (Trustee Director):
.l11- >...2019 3lRII\
24 General Motors (VML)Pension Plan Report of the Actuary
Certification of schedule of contributions
Name of scheme Vauxhall Motors LimitedPension Plan
Adequacy of rates of contributions
1. Icertifythat, in my opinion, the rates of contributions shown inthis schedule of contributions are such that the statutory funding objective could have been expected on 1 January 2017 to be met by the end of the period specified inthe recovery plan dated 30 July 2017.
Adherence to statement of funding principles
2. I hereby certifythat, in my opinion, this schedule of contributions is consistent with the Statement of Funding Principles dated 30 July 2017.
The certificationof 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 certificationof their adequacy for the purpose of securing the scheme’s liabilitiesby the purchase of annuities, ifthe scheme were to be wound up.
Signature Date 30 July 2017
Name Steven Keller Qualification
Fellow of the Institute and Faculty of Actuaries
Address Parkside House Name of employer Aon Hewitt Limited Ashley Road Epsom Surrey KT18 5BS
25 General Motors (VML)Pension Plan Members’ Information
General Enquiries General Enquiries canbe sent to The Pension Department, AW House, 6-8 Stuart Street, Luton,LUI 2SJ. Alternatively an e-mail can be sent to [email protected] Pensions Tracing Service Contact details for the Pensions Tracing Service, which can help members trace an old pension scheme that they have lost contact with, are:
Pension Tracing Service, The Pension Service 9, Mail Handling Site A, Wolverhampton,WV98 1LU Telephone: 0800 731 0193 The Pensions Advisory Service
Any concern connected with the Plan should be referred to Mrs M McDonald, 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 Trustee 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 1RO Telephone: 0800 011 3797 Pensions Ombudsman Incases 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:
10 South Colonnade, Canary Wharf E14 4PU Telephone: 0800 917 4487
26