67. The actuary said that on the current set of assumptions, liability coverage was 112% with a surplus of £239 m and on that basis the Principal Employer's contribution for 1997 had been nil. The paper discussed various alternative assumptions which might be used in preparing valuations. The actuary gave his opinion that the projected residual surplus as at December 1997 would be sufficient to fund M Plan contributions for 1998 subject to certain provisos. Following the review of the paper Mr Morley
"asked if consideration should be given, by the trustee, as to how
the projected surplus should be used, ie should consideration be given to using it to enhance the level of any pension in payment increases. The Secretary pointed out that in accordance with the provisions of the Trust Deed & Rules the decision on contributions into a scheme which was in surplus rests firmly with the Company. It was agreed that the question of the trustee's role where a surplus exists would be revisited at the next TMC meeting. Mr Lamb confirmed that the Company would be looking at the matter of a discretionary increase in the near future and that he would pass on Mr Morley's views to Ms A Grinstead (as Director of Human Resources)."
The meeting agreed to accept the proposed funding strategy and actuarial assumptions set out in the actuary's paper.