About Your Scheme
Sub-funds that make up the Scheme
The Guaranteed Fund
This is the fund which contains the assets necessary to pay all of the Guaranteed liabilities, which are the benefits earned by members during their employment with British Coal and the annual RPI increase on these benefits, ie all benefits except Bonus Augmentations.
The Bonus Augmentation Fund
This contains the members’ share of surplus; Bonus Augmentations awarded since 31 October 1994 are paid from the assets of this Fund.
The Guarantor’s Fund
This contains the balance of the Guarantor’s share of surplus awarded since 31 October 1994. Its liabilities consist of the Trustees’ obligation to pay the Government its remaining share of surplus in 10 annual instalments.
The Investment Reserve
This is the balance of British Coal’s share of surplus from valuations before 1994. This money will be available as first call to meet a deficiency in the Guaranteed Fund but, if not used for this purpose, will be payable to the Government over a period of not less than 25 years from 31 October 1994.
