Charities granted extentions on deficit repayment plans

Posted on Jan 23, 2012

Hundreds of charities and quasi-public sector organisations have been saved by extensions of up to 30 years to their deficit repayment plans.

The amounts non-council organisations in the LGPS must pay into the plan have increased sharply due to investment underperformance of 10% over the past decade, and increased longevity projections. This increased debt, which must be paid within a finite period, has put around 300 organisations at risk of bankruptcy.

However, negotiations between such organisations, the LGPS, trustees and actuaries has resulted in an extension to the repayment periods for many.

Barry McKay, actuary at Hymans Robertson, claimed the LGPS was willing to renegotiate repayment periods for charities in particular.