On the go: The £4.1bn Merchant Navy Officers Pension Fund plans to insure all of its remaining liabilities by 2025, as it is set to undergo its next triennial actuarial valuation at the end of the quarter.
The fund's statement of investment principles revealed that it has the objective of insuring all remaining liabilities by June 30 2025, starting with the goal to achieve sufficient funding to secure at least 103 per cent of member benefits.
According to the fund's annual report, its next actuarial valuation is due as at March 31 2021.
The fund's most recent actuarial valuation, effective as at March 31 2018, showed a deficit of £73m, representing a 98 per cent funding position for the fund.
Over the year to March 31 2020, £24.5m worth of deficit contributions were paid into the fund by employers.
Since the last valuation, the fund has reduced its investment risk through the conversion of its longevity swap with Pacific Life Re into a £1.6bn buy-in with the Pension Insurance Corporation in February 2020.
In the annual report, chair of the trustees Rory Murphy, said the Covid-19 pandemic had a limited impact on the fund.
He said: “The funding level has continued to improve thanks to the MNOPF’s sophisticated investment strategy. The fund invests in a wide range of asset types and utilises insurance policies and other protection strategies to minimise investment risk.”
He added: “At March 31 2020, less than 5 per cent of the fund was invested in equities. This diversification has contained the impact of stock market shocks on the MNOPF’s funding level”.
This article originally appeared on Mandatewire.com
