Financial Statements to 31 July 2008 - Perth College - UHI ...

Perth College
Notes to the Accounts
31 Pension and similar obligations
The College's employees belong to 2 principal pension schemes, the Scottish Teachers' Superannuation Scheme (STSS) and
Tayside Superannuation Scheme, the Local Government Pension Scheme (LGPS). The
total pension cost for the year was £1,067k (2007 - £922k).
Scottish Teachers' Superannuation Scheme
The STSS, in common with most other public service superannuation schemes, has no real fund and is an
unfunded defined benefit scheme. Contributions on a pay as you go basis are credited to the Exchequer under
arrangements governed by the Superannuation Act 1972. A notional asset value is ascribed to the scheme
for the purposes of determining contribution rates
Under the definitions set out in Financial Reporting Standard 17: Retirement Benefits, the STSS is a multiemployer
pension scheme. The College is unable to identify its share of the underlying assets and liabilities
of the scheme. Accordingly, the College has accounted for its contributions as if it were a defined
contribution scheme.
The current contributions are:
Employees 6%
Employers 13.5%
Local Government Pension Scheme (Tayside Superannuation Fund)
The LGPS is a funded defined benefit scheme, with the assets held in separate trustee administered funds.
The scheme is subject to triennial valuation by independent actuaries, the last valuation being carried out as at
31 July 2008.
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
2008 2007
Discount rate at 31 July 6.40% 5.80%
Expected Return on Plan assets 6.40% 5.80%
Future salary increases 5.40% 5.00%
Future pension increases 3.90% 3.50%
Life expectancy from age 65 (years):
Manuals Officers (&post 98)
Non-pensioners
Males 19.54 19.54
Females 22.46 22.46
Pensioners
Males 18.62 18.62
Females 21.54 21.54
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