Financial Statements 2019/2020


MIDDLESEX UNIVERSITY NOTES TO THE ACCOUNTS (continued)


Year Ended 31 July 2020 31. PENSION SCHEMES


The University’s employees belong to two principal pension schemes, the Teachers’ Pension Scheme (TPS) for most academic staff and the Local Government Pension Scheme (LGPS) for all other staff. The schemes are defined benefit schemes providing benefits based on career average design. Benefits accrued prior to the schemes transition to career average arrangements are protected providing benefits based on a final pensionable salary. The University’s pension costs and charges for the year in respect of these two schemes included within note 9 staff costs was:


Year Ended 31 July 2020 £’000


Total pension cost for the year within staff costs: Contributions paid by the University


FRS102 pension charge: LGPS - current and past service costs LGPS - employer contributions


17,308 Year Ended


31 July 2019 £’000


14,720


13,975 (8,579) 5,396


Total pension costs (note 9) Teachers’ Pension Scheme


22,704


12,196 (8,133) 4,063


18,783


The Teachers’ Pension Scheme (TPS) is operated by the Department for Education (DfE) and is governed by statutory regulations. Under the definitions set out in Financial Reporting Standard 102 (FRS102), the TPS is a multi-employer pension scheme. As the TPS pension benefits are underwritten by central government and the University has no future obligation to make contributions to the scheme, this is effectively a defined contribution scheme in so far as it affects the University. As a result, contributions to this scheme are accounted for as if the scheme was a defined contribution scheme.


The TPS is a statutory, contributory, unfunded, defined benefit scheme. The regulations under which the TPS operates are the Teachers’ Pensions Regulations 1997, as amended. Contributions are credited to the government exchequer on a ‘pay as you go’ basis under arrangements governed by the Superannuation Act 1972. A notional asset value is ascribed to the Scheme for the purposes of determining contribution rates.


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 for the period ending 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) was 23.68% (inclusive of the administrator levy of 0.08%).


The total contribution made by the University for the year ended 31 July 2020 was £13,176k (2019: £10,838k) of which employers contributions totalled £9,110k (2019: £6,734k) and employees contributions totalled £4,067k (2019: £4,104k).


More information about the TPS can be obtained from www.teacherspensions.co.uk Middlesex University 123


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