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Sector braced for pensions revaluation
The social housing sector is braced for tomorrow’s revaluation of the Social Housing Pension Scheme (SHPS).
SHPS is the multi-employer pension scheme to which most housing associations are signed up, and is revalued every three years. The next revaluation is scheduled for tomorrow, although associations will not be notified of the estimated valuation until December.
The calculated valuation, which will be used to determine any increase in contributions, will be released in March.
Various associations have seen increased pension deficits on their own pension schemes, which are affected by the same underlying market conditions as SHPS. This could suggest that the revaluation will see the SHPS deficit increase as well.
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Notably, Sanctuary’s pension deficit has doubled since it left SHPS. The association carries out revaluations annually now, meaning it can keep track of changes in actuarial assumptions more regularly than employers that are part of SHPS.
But associations that are still part of SHPS have also seen growing deficits for their own pension schemes that are kept separate from the multi-employer scheme. Sovereign, for example, saw its pension scheme revalued at £6m less than the previous valuation, while Aster’s pension deficit grew by £4m.
