Statement of Accounts 2020 / 21
Notes to the Accounts For the year ended 31 July 2021
32 Pension Schemes ( continued ) |
At 31 July 2021 |
At 31 July 2020 |
£’ 000 |
£’ 000 |
Analysis of movement in the fair value of scheme assets Fair value of assets at the start of the year |
30,558 |
29,739 |
Expected return on assets |
454 |
650 |
Actuarial gain on assets |
1,976 |
585 |
Contributions paid by University |
1,447 |
1,363 |
Administration expenses reimbursed by the University |
250 |
201 |
Actual benefit payments |
( 1,992 ) |
( 1,719 ) |
Recognition of insured pensioners |
1,402 |
- |
Administration expenses paid by KSS |
( 316 ) |
( 261 ) |
Fair value of scheme assets at the end of the year 33,779 30,558
KSS assets do not include any of the University ’ s own financial instruments , or any property occupied by the University .
Year to 31 July 2021 |
Year to 31 July 2020 |
£’ 000 |
£’ 000 |
Actual return on Scheme assets Expected return on assets |
454 |
650 |
Actuarial gain on assets |
1,976 |
585 |
Actual return on Scheme assets before administration expenses |
2,430 |
1,235 |
Administration expenses |
( 316 ) |
( 261 ) |
Actual return on Scheme assets before administration expenses 2,114 974
Based on the Schedule of Contributions dated 8 October 2018 , the University expects to contribute in the region of £ 1,700k to the scheme in the next year , through deficit contributions and expenses payments .
( iii ) Local Government Pension Scheme ( LGPS )
LGPS is a contributory defined benefit pension scheme administered by Staffordshire County Council . The scheme is governed by the Public Service Pensions Act 2013 ( as amended ). The fund is administered in accordance with the following secondary legislation :
• the Local Government Pension Scheme Regulations 2013 ( as amended )
• the Local Government Pension Scheme ( Transitional Provisions , Savings and Amendment ) Regulations 2014 ( as amended )
• the Local Government Pension Scheme ( Management and Investment of Funds ) Regulations 2016 .
• the Statement of Recommended Practice ( SORP ) The Financial Reports of Pension Schemes ( as amended in 2014 ).
The employer contribution ( including contributions in respect of unfunded benefits ) made for the year ended 31 July 2021 was £ 107k ( 2020 : £ 224k ). This includes £ nil ( 2020 : £ nil ) outstanding contributions at the balance sheet date .
For the year ended 31 July 2021 , the University has been contributing at a rate of 34.40 % with agreed annual lump sum contributions to the scheme of £ 88k . Employee contributions were tiered at 6.50 % and 6.80 % of pensionable salaries .
Assumptions
The following information is based upon a full formal actuarial valuation of LGPS as at 31 March 2019 projected forward to 31 July 2021 by a qualified independent actuary . There is an allowance for the impact of the recent McCloud ruling , as there was in the year to 31 July 2020 .
The 2019 formal funding valuation included an allowance for full Guaranteed Minimum Pension Benefits ( GMP ) indexation within the LGPS . The rolled forward position to 31 July 2021 therefore includes this allowance .
The principal financial assumptions used to calculate scheme liabilities under FRS102 are :
At 31 July 2021 |
At 31 July 2020 |
% pa |
% pa |
Discount rate |
1.55 |
1.30 |
Price Inflation ( RPI ) |
3.35 |
3.10 |
Price Inflation ( CPI ) |
2.80 |
2.20 |
Rate of increase in salaries |
3.20 |
2.60 |
Rate of increase of pensions |
2.80 |
2.20 |
Commutation allowance ( Members commute % of their pension ) – pre-April 2008 service |
50 % |
50 % |
-post-April 2008 service |
75 % |
75 % |
67