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Charity sector's largest pension liabilities rose by 14.5% in 2012/13

Wednesday, July 23, 2014

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The charity sector's largest pension liabilities grew by 14.5% in 2012/13, according to data from a UK charity financial information provider.

Data from Charity Financials reveals that 379 charities reported pension liabilities of £0.5m or more in their most recent accounts. Excluding those that hadn't posted data for all years between 2007/08 and 2012/13 (using Charity Financials' year-end grouping system) reduces the number to 335.

Among this sample, total pension liabilities rose from £2.14bn in 2011/12 to £2.45bn in 2012/13, which equates to an increase of 14.5%. This is a slightly lower figure than the 19.7% rise seen the previous year.

Looking further back, reported pension liabilities rose by 48.0% in 2008/09 and 72.0% in 2009/10, before falling by 28.0% in 2010/11.

The charity posting the largest rise in 2012/13 was the Girl's Day School Trust, which saw an increase of £24.1m. It should be noted, however, this was due to the Trust withdrawing from the Independent Schools Pension Scheme, with the result that a large liability was added to the balance sheet.

Other big rises were seen at Nuffield Health, where there was an increase of £21.9m to £106.8m in 2012/13, and the RSPB, which saw an increase of £21.0m to £67.8m.

The biggest fall was seen at the Guide Dogs for the Blind Association, where the pension liability fell by £15.2m to £31.0m.

Based on most recent accounts, the Wellcome Trust has the highest reported pension liability overall, with a figure of £117.7m in the year ending 30 September 2013. This was a 19.6% increase on the previous year.

It is followed in this respect by The National Trust, which was up 4.8% to £115.0m in 2012/13, and the Church Commissioners for England, which was up 7.2% to £111.8m the same year.