Financial Statements 2018/19


29.Pension Scheme(continued)


The University has set out below the information available on the latest Scheme funding valuation and the employer’s contribution rates.


The Scheme is subject to a full actuarial valuation every four years with the most recent funding valuation carried out as at 31 March 2016. The funding valuation report was published by the Government Actuary’s Department on behalf of the DfE on 5 March 2019. The key highlights from this report are as follows:


Whole scheme valuation of balance sheet Aggregate scheme liabilities


Aggregate scheme notional assets Total surplus/(shortfall)


At 31 March 2016 £bn


218.1 196.1 (22.0)


The employer’s contribution rates set by the Schemes actuary and approved by the DfE for the University’s academic staff are from 1 September 2015 (to 31 August 2019) 16.48% of pensionable salaries (inclusive of the administrator levy of 0.08%). The employer’s contribution rate determined by the valuation at 31 March 2016 and applicable from 1 September 2019 (to 31 March 2023) is 23.68% (inclusive of the administrator levy of 0.08%).


The total contribution made by the University for the year ended 31 July 2019 was £10,838k (2018: £10,722k) of which employers contributions totalled £6,734k (2018: £6,609k) and employees contributions totalled £4,104k (2018: £4,113k).


More information about the TPS can be obtained from www.teacherspensions.co.uk


Local Government Pension Scheme The Local Government Pension Scheme (LGPS) is a funded defined benefit scheme, with assets held in separate trustee administered funds. It is administered locally by the London Borough of Barnet and is a multi-employer scheme. The total of all contributions into the LGPS for the year ended 31 July 2019 was £10,302k (2018: £10,180k) of which employers contributions totalled £8,133k (2018: £8,035k) and employees contributions totalled £2,169k (2018: £2,145k).


For the period to 31 July 2019 (date extended from period to 31 March 2019 under an arrangement with the scheme administrators) the overall employer contribution rate was 27.7% (2018: 27.7%).


From 2014, the University entered into a funding deficit recovery plan with the scheme administrators. This treatment required the employers cost of providing pension benefits to be broken down into two distinct contribution elements: employers current scheme funding and a deficit reduction contribution. Contributions under the plan are set for three years and renewed as part of the results of the full triennial actuarial valuation of the Fund. The latest actuarial valuation was published for the period to 31 March 2016.


Under the current three year funding deficit recovery plan, for the period from 1 August 2018 (date extended from 1 April 2018) to 31 July 2019, employers current scheme funding was 18.4% (2018: 18.4%) of pensionable salaries and the deficit reduction contribution was £2,763k (2018: £2,698).


The total employer contributions expected to be paid into the scheme during the year ended 31 July 2020 is £8,257k. This is based on the indicative rate from 1 August 2019 of 18.4% of pensionable salaries for current scheme funding and a deficit reduction contribution of £2,829k. The funding deficit recovery plan, which covers the three year period from 1 August 2017 to 31 July 2020, set out to achieve an equivalent total annual employers contribution rate of 27.7% (three years ending 31 July 2017: 26.6%).


For the period to 31 March 2016 the scheme was contracted out of the State Additional Pension (S2P) of pension provision. Contracting out on a defined benefit basis ended in April 2016, when the government’s state pension reforms came into force.


More information about the LGPS can be obtained from www.lgpsmember.org/.


Financial Reporting Standard 102 (FRS102) The following information is based upon a full actuarial valuation of the Fund at 31 March 2016 updated to 31 July 2019 by a qualified independent actuary, using financial assumptions in accordance with the requirements of FRS102.


Middlesex University 97


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