36
Annual Report and Financial Statements 2015–16
Pensions
We operate a funded pension scheme that has both defined-benefit and definedcontribution sections. We closed the defined-benefit section to new entrants on 1 October
2001 and closed it to new accruals on 31 March 2010. The annually calculated notional
surplus or deficit on the funding of the scheme is shown in the financial statement as the
‘pension reserve’ and is deducted from unrestricted funds in the balance sheet.
A detailed, actuarial, triennial valuation was carried out on 31 March 2015. Following this, a
revised funding plan was agreed with the members and the pension-scheme trustees.
The funding plan is a schedule of deficit-reducing payments designed to eliminate the
deficit by 2031.
As part of the annual report and financial statements preparation process, an actuarial
valuation was carried out on 31 March 2016 using methodology recommended by Financial
Reporting Standard 102. This valuation shows the market value of the scheme assets to be
£57.7m and the current value of the liabilities to be £65.1m. The net deficit on the scheme
as at 31 March 2016 was £7.4m, compared to a net deficit of £13.0m as at 31 March 2015.
Further details are included in Note 23.