The Plumbing and Mechanical Services (UK) Industry Pension Scheme was set up in 1975 with the aim of providing pension benefits for all employees of firms engaged in the Industry in the United Kingdom. The Scheme offers deferred benefits based on career average earnings.
The Scheme is governed by a Deed set up under Trust Law and operated and administered by a Trustee Company, Plumbing Pensions (UK) Ltd, whose Directors are drawn from the following industry bodies:
- The Association of Plumbing and Heating Contractors (APHC)
- The Scottish and Northern Ireland Plumbing Employers Federation (SNIPEF)
- Unite the Union
The scheme currently has more than 350 contributing employers and membership totalling over 35,000. All employees receive full tax relief on contributions paid, whilst employers’ tax relief is calculated on an individual basis. Full details of how the Scheme works can be found in our ‘Scheme Guide’. The Scheme no longer accepts new employers but employees of existing employers may be eligible to join the Scheme.
The Plumbing Industry Scheme has a formal financial assessment called an actuarial valuation at least once every three years. The latest actuarial valuation was carried out as at 5th April 2014, and the Actuary found that the assets were enough to cover 101% of the Scheme’s liabilities.
As part of the 2014 actuarial valuation, the current rates of both the employer and employee contribution rates were reviewed to check they were appropriate for meeting the costs of providing benefits in respect of future years’ service. Following this review, the Actuary recommended an increase to the employer and employee contribution rates for all membership categories. Following an employer and employee consultation on the proposals in the autumn of 2015, the Scheme’s contribution rates increased in April 2017 and April 2018.
Preliminary results for the 2017 actuarial valuation show that the Scheme holds enough assets to meet all its benefit promises. However, the Actuary has said the Scheme’s pension contribution rates need to increase because future expected investment returns are so low. The Trustee and the Constituent Organisations that collectively must agree the Scheme’s benefits are considering various options, including whether the Scheme should close to further accrual from a future date to be decided.
The Scheme’s financial Annual Report & Accounts for the year ending 5 April 2017 can be found here.
An annual member update issued in October 2017 can be found here.
Summary Funding Statement
The Scheme Trustee is required to provide members and beneficiaries with an annual summary funding statement providing information from the Scheme’s latest financial health check. The latest statement from October 2017 can be found here.
You can find information about the Trustee’s policies and investment strategy, including a summary of the types of assets the Scheme is invested in, in the Statement of Investment Principles.