Financial Statements 2020 | 65
28 . Pension
The association operates a SHPS defined contribution pension scheme in respect of auto-enrolment which commenced 1 October 2013 . The assets of the scheme are held separately from those of the association . The contributions of the association varied between 3 % and 7 % and employees varied between 4 % and 7 % of pensionable earnings . The total employer cost of pension contributions for the year was £ 1,032,939 ( 2019 : £ 624,315 ). The number of employees in the pension scheme at the year-end was 1035 ( 2019 : 972 ).
The defined contribution pension scheme with AEGON was closed to new entrants during the financial year . The contributions of the association varied between 7 % and 12 % and employee contributions varied between 4 % and 7 % of pensionable earnings . The total employer cost of pension contributions for the year was £ 311,816 ( 2019 : £ 344,259 ). Contributions payable are charged to management expenses as they fall due . The number of employees in the pension scheme at the year-end was 88 ( 2019 : 100 ).
The association also operates a NEST scheme . The assets of this scheme are held separately from those of the association in independently administered funds . The pension contributions payable for the financial year ended 31 March 2020 were £ 382,761 ( 2019 : £ 294,669 ) and an amount of £ 84,375 was owing to the schemes at the year end . The number of employees in the pension scheme at the year-end was 1,326 ( 2019 : 1,379 ).
The company participates in the Social Housing Pension Scheme ( the Scheme ), a multi-employer scheme which provides benefits to some 500 non-associated employers . The Scheme is a defined benefit scheme in the UK .
The Scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005 . This , together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council , set out the framework for funding defined benefit occupational pension schemes in the UK .
The last triennial valuation of the scheme for funding purposes was carried out as at 30 September 2017 . This valuation revealed a deficit of £ 1,522m . A Recovery Plan has been put in place with the aim of removing this deficit by 30 September 2026 .
The Scheme is classified as a ‘ last-man standing arrangement ’. Therefore the company is potentially liable for other participating employers ’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the Scheme . Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme .
For financial years ending on or before 28 February 2019 , it was not possible for the company to obtain sufficient information to enable it to account for the Scheme as a defined benefit scheme , therefore the company has accounted for the Scheme as a defined contribution scheme .
For financial years ending on or after 31 March 2019 , it is possible to obtain sufficient information to enable the company to account for the Scheme as a defined benefit scheme .
For accounting purposes , a valuation of the scheme was carried out with an effective date of 30 September 2018 . The liability figures from this valuation were rolled forward for accounting year-ends from 31 March 2019 to 29 February 2020 inclusive . The liabilities are compared , at the relevant accounting date , with the company ’ s net deficit or surplus .
Similarly , an actuarial valuation of the scheme was carried out as at 30 September 2019 to inform the liabilities for accounting year ends from 31 March 2020 to 28 February 2021 inclusive .