Statement of Reasonable Projection
(SORP)
 A requirement for the issue of a SORP for Occupational
Schemes became effective on July 1st.
 A SORP should be issued for new schemes, on receipt of a
transfer value and annually with the member certificate.
 An approach for preparing the SORP has been discussed
with the Pensions Board.
Statement of Reasonable Projection (SORP)
Costs
A series of banded costs reflecting the nature of the underlying
asset/product e.g.
 Band 1: 0.25% RIY
Direct Property, Equity (including private equity), Cash or Bonds.
 Band 2: 0.75% RIY
Collective Investment Funds (unit linked, unit trusts, mutual funds,
OEICs, Insurance Company funds), Stockbrokers Funds/Portfolios.
 Band 3: 1.25% RIY
Syndicated Investments, Hedge Funds, Geared Property/Equity and
others not listed above.
Statement of Reasonable Projection
(SORP)Investment Return
Asset Mix
Assumed Future Rate of
Return
Equities
7.0%
Property
7.0%
Fixed Interest
4.5%
Cash
3.0%
Other Assets
3.0%
Statement of Reasonable
Projection (SORP)
 Copies of the detailed correspondence with Pensions
Board has been posted to the website.
 A spreadsheet has been prepared for APTI by John
McCarthy. It is still being tested however a beta
version will be issued to members over the coming
days.
Download

Statement of Reasonable Projection (SORP)