Each year, once the Scheme’s financial statements have been audited and the tax calculations completed, the Trustees declare a rate of return to be applied to your accounts in the Scheme. The same rate applies to all members and to all their accounts. The rate of return depends on the investment return on the Scheme’s assets, less taxes and certain expenses – this year 5.94%.

Each year the Trustees consider the appropriate level of the Reserve Account. For the year ended 31 March 2024, the Trustees agreed that the Reserve Account should be maintained at 0.5% of the total net assets, in line with the Trustees’ policy.

Based on the March 2024 interim rate of 1.59%, the Reserve Account would be lower than the required 0.5% level; accordingly the March 2024 interest rate was adjusted down to the final March 2024 rate of 1.06% on 5 June 2024. As such there will be no distribution from the Reserve Account to increase investment earnings this year.

The Reserve Account builds up each year when members leave the Scheme and are not entitled to the full balances in their Employer Subsidy Accounts.

This year, your accounts have been updated with an investment return of 5.94%. The interim rates applied during the year are shown on page 7 of the Annual Report.

The following chart shows the investment returns credited to members’ account balances for the past decade. Although the Scheme has had its annual ups and downs, reflecting the conditions of the markets in which assets are invested, it has paid members an average return of 4.53% p.a. (after tax and expenses) over the last 10 years.