Page 47 - 2018-19_Annual_Report_and_Financial_Statements

DIOCESE OF CHICHESTER ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
20
Pension and similar obligations (Continued)
Valuation of the Teachers' Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education in March 2019.
The key elements of the valuation and subsequent consultation are:
• an increase in employer rates from 16.48% to 23.68% of pensionable pay (including a 0.08%
employer administration charge)
• the rise in contribution delayed from 1 April to September 2019
• total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for
service to the effective date of £218,100 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,000 million giving a notional past service deficit of £22,100 million
• an employer cost cap of 10.9% of pensionable pay will be applied to future valuations
• there will be funding from the DFE for the financial year 2019/20 to help maintained schools and academies meet the additional costs resulting from the scheme valuation. Funding for 2020/21
onwards will be discussed as part of the next Spending Review round.
The TPS valuation for 2016 determined an employer rate of 23.6%, which is payable from September 2019. The next valuation of the TPS will be at March 2020 and will be based on April 2016 data, whereupon the employer contribution rate is expected to be reassessed and will be payable from 1 April 2023.
The employer's pension costs paid to the TPS in the period amounted to £1,019,620 (2018: £913,552).
A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.
Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The academy trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy trust has set out above the information available on the scheme.
Local Government Pension Scheme
The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee- administered funds. The total contributions are as noted below. The agreed contribution rates for future years are as follows:
West Sussex:
Employers 17.5% (Central CE Academy); 24.7% (The March CE Primary School) Employees 5-7% average across all West Sussex school sites
East Sussex
Employers 24.9% (all East Sussex school sites)
Employees 5-7% average across all East Sussex school sites
As described in note 25 the LGPS obligation relates to the employees of the academy trust, being the employees transferred as part of the conversion from the maintained school and new employees who joined the scheme in the period. The obligation in respect of employees who transferred on conversion represents their cumulative service at both the predecessor school and the academy trust at the balance sheet date.
-44-