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, were:


Year ended 31 July 2021 £’000


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


FRS 102 pension charge: LGPS - current and past service costs LGPS - employer contributions


17,450 Year ended


31 July 2020 £’000


17,308


15,646 (8,147) 7,499


Total pension costs (note 9) Middlesex University Defined Contribution Pension Scheme


The Middlesex University Defined Contribution Pension Scheme provided by Scottish Widows is a defined contribution plan, a post employment benefit plan under which MU Services Limited pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the statement of comprehensive income in the year during which services are rendered by MU Services Limited employees. The pension contributions for the year in respect of the Scheme, included within note 9 consolidated staff costs, totalled £3k (2020: £Nil).


Teachers’ Pension Scheme


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 (FRS 102), 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.


24,949


13,975 (8,579) 5,396


22,704


137


Financial Statements 2020/21


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