NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 1996 (CONTINUED)
|9.||INVESTMENTS (At Cost)|
|Debentures and Loans||-||321,375|
|Market Value at 31 December||£1,936,693||£2,020,800|
|Investment in M.S.I. Brussels||52,717||57,126|
|Unity Trust 'A' Shares||500||500|
|Unity Trust Loan Stock||300||300|
|The Trades Union Congress operates a pension scheme providing benefits based on final years salary. The assets of the scheme are held separately from the Trades Union Congress and are invested through investment managers. Contributions to the scheme are charged against revenue in the period in which they are payable to the scheme. The contributions are determined by a qualified actuary on the basis of valuations using the projected unit method. The most recent valuation was at 31 August 1996. The assumptions which have the most significant effect on the results of the valuation are those relating to the rate of return on investments and the rates of increase in salaries and pension. It was assumed that the investment return would be 8½% per annum, that salary increases would average 6½% per annum and that present and future pensions would increase at the rate of 4% per annum. The pension charge for the period was £447,161 (1995 - £472,839). The results of the valuation show that the value of the schemes assets was £18,781,000 and that the actuarial value of those assets represented 110% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The contributions of the Trades Union Congress and its employees were 15.6% and 6% respectively.|
|11.||As at 31 December 1996 the TUC had contingent liabilities of £250,000 in connection with a guarantee relating to bank borrowings of an affiliated union.|
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