Actuary’s Report

  • Graeme Muir

  • Barnett Waddingham LLP, Consultant Actuaries
  • “At 31 March 2021… the Trust’s assets were over 100% of the funds required to meet the projected future funeral costs covered by the plans in the Trust.”

As the appointed Actuary to the Golden Charter Trust Funds, I report at least annually to the Trustees regarding the ability of the Trust Fund to meet its liabilities for maturing funeral plans.

As at 31 March each year, a full and detailed actuarial valuation is undertaken.  Additional updates are also provided by me during the year to the Trustees as requested.

The valuation addresses the question of whether or not, in my opinion, the assets in the Trust will be sufficient to meet future plan values paid to funeral directors for all plans in force at the valuation date. In carrying out my valuation, I complete the following three steps:

1. I project the expected payments or cashflows out of the Trust in respect of future maturities from existing plans allowing for increases in plan values and assumed rates of mortality of plan holders.

2. I discount these future projected cashflows to a net present or capital value at the valuation date.  The discount rate used is a prudent estimate of future investment returns expected to be earned by the underlying investments of the Trust net of tax and expenses.

3. I compare the net present value of the projected payments with the market value of the assets at the valuation date to determine the funding level, which is the ratio of the value of the assets to the net present value of the projected payments from the Trust.

On the basis that the assumptions underlying the actuarial valuation are borne out in practice, a funding level of over 100% means that then the assets will be sufficient to meet the projected future plan values paid to funeral directors.

The most recent full valuation was at 31 March 2021 and showed that the Trust’s assets were over 100% of the funds required to meet the projected future funeral costs covered by the plans in the Trust.

Graeme Muir
Partner, Barnett Waddingham LLP, Consultant Actuaries