Statement of Reasonable Projection (SORP)

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.