Select Committee on House of Commons Members' Fund Report


  7.1  The liabilities and assets of the Fund have been assessed on the actuarial assumptions described in section 6 above. The results are set out below:

Position as at 30 September 2006
Liabilities £000£000
Capitalised value of benefits to:

  1939 Act widows
  1948 Act former Members and widows 251
  1948 Act pre-1988 widows791
  1981 Act former Members90
  1981 Act widows340

Reserve for future administration expenses 800

Total liabilities

Market value of investments held at 30.9.2006 4,604

Excess of assets over liabilities 2,281

  This statement does not allow for income from Members' contributions payable after 30 September 2006 nor for Grants in Aid made after that date.

  7.2  The results show that the Fund remains in a very strong financial position, with an assessed surplus of around £2.3 million as at 30 September 2006. This surplus is equivalent to around 100% of the assessed value of the liabilities.

  7.3  The surplus at this current assessment is higher than the surplus of around £1.3 million disclosed at the time of my previous report as at 30 September 2003. This increase in surplus is primarily attributable to the favourable investment experience and the fact that Exchequer Grant in Aid payments of £645,000 were made during the period since the previous assessment. However, there is significant potential for the surplus to fluctuate from valuation to valuation because of the high proportion of the assets that is invested in equities.

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Prepared 29 October 2007