2011/2012 audited annual accounts - Falkirk Council

FALKIRK COUNCIL
NOTES TO THE CORE FINANCIAL STATEMENTS
• an annual report dealing with
(i) the extent to which the administering Council and constituent employers have achieved any levels of
performance set out in a pension administration strategy
(ii) such other matters arising from its pension administration strategy as it considers appropriate
• the current version of the Funding Strategy Statement or details of where that statement may be obtained
• the current version of the Statement of Investment Principles or details of where that statement may be obtained
• any other material which the administering Council considers appropriate
The annual report of the Falkirk Council Pension Fund in respect of year 2011/12 can be inspected at the offices of the
Council or online at www.falkirk.gov.uk by following the links to local government pension scheme.
• The Teachers’ Pension Scheme
The scheme is administered by the Scottish Public Pensions Agency (SPPA) and provides defined benefits for teaching
employees. The employee contribution is 6.4%. The Council contributes towards the costs of the scheme by making
contributions based on a percentage of members’ pensionable salaries. Although the scheme is unfunded, the Government
Actuary uses a notional fund as a basis for calculating the employers’ contribution rate. Annual reports in respect of the
STSS (Scottish Teachers’ Superannuation Scheme) are available from:
http://www.sppa.gov.uk/index.php?option=com_content&view=article&id=323&Itemid=840
As it is not possible for the Council to identify a share of the underlying liabilities attributable to its own employees,
then for the purposes of this statement of accounts, it is accounted for on the same basis as defined contribution
scheme.
In addition to both of the schemes above, the Council has powers to grant additional benefits under Discretionary
Payments Regulations relating to teaching and non-teaching employees. Typically, benefits under the regulations may be
awarded by the Council where an employee leaves in the interests of the efficiency of the service or on the grounds of
redundancy. These are unfunded schemes meaning that there are no investment assets built up to meet the pension
liabilities. These benefits have been accounted for on a defined benefit basis.
During the year, the Council paid requisitions to Central Scotland Joint Police Board and Central Scotland Joint Fire and
Rescue Board. These requisitions have been used to meet, inter alia, the costs arising from the Police Pensions Schemes
and the Firefighters Pension Schemes.
Local Government Pension Scheme and Discretionary Benefits
In accordance with the requirements of International Accounting Standard 19 “Employee Benefits” (IAS 19), the Council
is required to disclose certain information concerning assets, liabilities, income and expenditure related to Pension
Schemes for its employees.
The assets and liabilities of the Council’s pension arrangements as at 31 March 2012 have been calculated by Hymans
Robertson a firm of independent Consulting Actuaries.
The cost of retirement benefits in the Net Cost of Services is recognised when employees earn them, rather than when the
benefits are eventually paid as pensions. The following information is in relation to the Comprehensive Income and
Expenditure Statement.
Comprehensive Income and Expenditure Statement
Year Ended: 31/03/11 31/03/12
£’000 £’000
Current Service Cost 20,720 18,170
Interest Cost 35,624 33,651
Expected Return on Employer Assets (28,796) (30,370)
Past Service Costs/(Gains) (54,323) 2,441
Losses/(Gains) on Curtailments and Settlements - -
Total (26,775) 23,892
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