NILGOSC operates a Defined Benefit pension scheme on behalf of its members and their employers. This means that pensions received by members are calculated based on the salary of the member and the length of time they have been a member of the scheme paying in contributions. Unlike Defined Contribution pension schemes the value of the pension is not correlated with investment market returns. Therefore NILGOSC members can be reassured that the value of their pension will not be affected.
NILGOSC maintains an investment fund which is used to meet the liabilities of the pension fund. At the last valuation the fund was in surplus meaning that the value of the assets exceeded the value of the liabilities. Should this position reverse additional payments will be made over time by the scheme employers to bring the value of the fund back into balance. Whilst the investment fund will no doubt be affected by the current market turmoil, the fund is diversified which is expected to dampen the volatility being experienced.
