Keele University
Notes to the Accounts For the year ended 31 July 2021
32 Pension Schemes ( continued )
The most significant non-financial assumption is the assumed level of longevity . The table below shows future life expectancy assumptions ( in years ) used in the accounting assessments based on the life expectancy of male and female members .
Current Pensioner aged 65 ( Male ) |
Non-pensioner currently aged 45 ( Male ) |
Current Pensioner aged 65 ( Female ) |
Non-pensioner currently aged 45 ( Female ) |
At 31 July 2021 |
21.4 |
22.5 |
24.0 |
25.7 |
At 31 July 2020 |
21.2 |
22.1 |
23.6 |
25.0 |
Life expectancy is based on the fund ’ s VitaCurves with improvements in line with the CMI 2020 model , with a 0 % weighting of 2020 data , standard smoothing ( Sk7 ), initial adjustment of 0.5 % and a long-term rate of improvement of 1.5 % per annum .
The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions , which , due to the timescale covered , may not necessarily be borne out in practice .
Scheme assets of LGPS
As noted in Note 22 , based on the actuarial calculations , the LGPS had a surplus of £ 77k which has not been recognised in these financial statements . This is reflected below by reducing the assets of the scheme to £ 5,160k to give a nil provision and adjusting the actuarial gain in respect of pension schemes recognised in Other Comprehensive income .
The assets in the scheme were :
Fair value as at |
31 July 2021 |
31 July 2020 |
£’ 000 |
£’ 000 |
Equities / Return Seeking Funds |
3,664 |
2,771 |
Corporate bonds |
980 |
1,082 |
Property |
361 |
390 |
Cash |
155 |
86 |
Total 5,160 4,329
The scheme ’ s assets , which are not intended to be realised in the short term and may be subject to significant change before they are realised , and the scheme ’ s liabilities , which are derived from cash flow projections over long periods and thus inherently uncertain , were :
At 31 July 2021 |
At 31 July 2020 |
£’ 000 |
£’ 000 |
Analysis of the amount shown in the balance sheet for LGPS Scheme assets |
5,160 |
4,329 |
Scheme liabilities |
( 5,160 ) |
( 5,044 ) |
Deficit in the scheme – recorded within pension provisions ( note 22 ) - ( 715 )
Current service cost |
27 |
24 |
Past service costs |
- |
- |
Total operating charge 27 24
Analysis of the amount charged to interest payable for LGPS |
|
|
Interest income on net assets |
( 56 ) |
( 96 ) |
Interest cost on defined benefit obligation |
64 |
102 |
Net charge to other finance income 8 6
Total profit and loss charge before deduction for tax 35 30
Analysis of other comprehensive income for LGPS : Experience gain on assets |
872 |
( 324 ) |
Experience loss on liabilities |
69 |
173 |
Change in demographic assumptions |
( 60 ) |
( 23 ) |
Change in financial assumptions |
( 238 ) |
( 327 ) |
Total other comprehensive income before deduction for tax 643 ( 501 )
68