Pension Fund Valuations or ‘Red Book’ explained

Pension Fund Valuations

 We have the benefit of 19 experienced RICS registered valuers located across the South West, covering Bristol, Exeter, Plymouth and Truro. As part of our day-to-day work, we undertake valuations for a variety of purposes, one of which includes the valuation of assets for pension funds, SSIP and SSAS providers.

Pension Fund Valuations

By Christie Harvey MRICS, General Practice Surveyor

The main purpose behind an actuarial valuation (an appraisal of a pension fund in its entirety) is to establish whether the fund has appropriate assets to cover its accrued liabilities. These valuations are required by the Statutory Funding Objective which sets out provisions to all benefit schemes (unless exempt) and necessitates revaluation every 3 years.

One of the key functions of a pension fund is to diversify risk, therefore many will invest in a variety of asset classes, one of which includes commercial property.

Required as part of the actuarial valuation process, we provide RICS ‘Red Book’ compliant valuations on a variety of different asset types that can be held by pension funds which include retail, industrial and offices to name a few. The property must be inspected by a RICS Registered Valuer and the report be completed in accordance with the current RICS Professional Standards, effective 31 January 2022 (The Red Book); minimum requirements of reporting include a presentation of a comparable evidence schedule, thorough valuation methodology and market considerations. The provision of these reports not only provide a measure of performance, key for both regulatory bodies and fund contributors, but also provides transparency in terms of pension fund activities for its stakeholders.

If you require assistance or would like to find out more about our valuation services, please get in touch with one of our valuation team or alternatively click here.

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