Page 48 - 2019-20 Annual Report and Financial Statements

DIOCESE OF CHICHESTER ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
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Pension and similar obligations (Continued)
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 next valuation result is due to be implemented from 1 April 2023.
The employer's pension costs paid to the TPS in the period amounted to £1,643,331 (2019: £1,019,620). 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 21.2% (Central CE Academy); 23.7% (The March CE Primary School) Employees 5-9% average across all West Sussex school sites
East Sussex:
Employers 24.4% (all East Sussex school sites)
Employees 5-9% average across all East Sussex school sites
Hampshire (St Columba CE Primary Academy): Employers 18.9%
Employees 5-9%
As described in note 27 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.
Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.
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