Preview: Pension deficits rise by half as liabilities soar

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Housing association pension deficits across the UK rose by 53.7 per cent in a year, according to the last published financial results.

The change in 2014/15 was a sharp reversal from the 16 per cent fall in the 2013/14 year, although that report included fewer associations as a smaller number had deficits of over £2m.

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Social Housing’s analysis of social housing pension schemes looks at individual associations across the UK with deficits of above £2m in schemes outside the Social Housing Pension Scheme (SHPS), which covers England and Wales, and the Scottish Housing Associations’ Pension Scheme (SHAPS).

The figures show a £674.4m rise in the total deficit across the UK to £1.9bn. Fund assets grew 14.7 per cent to £6.3bn but liabilities increased by 21.9 per cent to £8.2bn.

English housing associations hold £7.6bn of these liabilities, with £5.8bn of assets.

FRS17

The majority of funds covered by this report are part of the Local Government Pension Scheme (LGPS), which has become prominent in the sector through large scale voluntary transfers (LSVTs).

The report does not cover SHPS or SHAPs as both are multi-employer schemes and their deficit is not apportioned to individual associations in their accounts.

The figures in this report are taken from housing associations’ accounts and are put together under FRS17 reporting rules…

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