Statement of Accounts 2011/2012 - Blackburn with Darwen Borough ...

NOTES TO THE FINANCIAL STATEMENTS
Local Government Pension
Scheme
Discretionary Benefits
Arrangements
2011/12 2010/11 2011/12 2010/11
£000 £000 £000 £000
Comprehensive Income and Expenditure
Statement
Cost of services:
- current service cost 11,562 14,256 0 0
- past service costs 152 ( 28,101 ) 0 ( 398 )
- settlements and curtailments ( 549 ) 112 0 0
Financing and investment income and
expenditure:
- interest cost 25,280 27,616 379 465
- expected return on scheme assets ( 21,080 ) ( 19,645 ) 0 0
Total post employment benefit charged to the
surplus or deficit on the provision of services
15,365 ( 5,762 ) 379 67
Other post employment benefit charged to the
Comprehensive Income and Expenditure
Statement
- actuarial gains and losses 34,053 ( 29,893 ) 160 ( 828 )
Total post employment benefit charged to the
Comprehensive Income and Expenditure
Statement
49,418 ( 35,655 ) 539 ( 761 )
Movement in Reserves Statement
- reversal of net charges made to the Surplus
or Deficit for the Provision of Services for post
employment benefits in accordance with the
Code
( 3,427 ) 18,655 259 573
Actual amount charged against the General
Fund Balance for pensions in the year
- employers’ contributions payable to scheme 11,938 12,893
- retirement benefits payable to pensioners 638 640
Past service and curtailment costs (gains) are normally the result of increased benefits being paid in the event of
pension scheme members retiring early during the year. They may result either from “early retirement strains” (the
cost of paying the members’ benefits earlier than had been anticipated), or from additional benefits being awarded
on retirement. Those costs which result from redundancy/efficiency retirements are classed as curtailment costs,
with any other amounts being regarded as past service costs. Any augmentation of benefits for active members
would also give rise to a past service cost.
During 2010/11, it was announced that future pension increases under the Scheme were to be linked to the
Consumer Price Index (CPI) rather than the Retail Price Index (RPI). This was treated by the actuaries as a
change in the provisions of the Scheme, which gave rise to a significant negative past service cost, and a
consequent reduction in the liabilities at 31 March 2011.
The cumulative amount of actuarial gains and losses recognised in the Comprehensive Income and Expenditure
Statement to 31 March 2012 is a loss of £34,213,000 (a gain of £30,721,000 in 2010/11).
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