Highways Agency Annual Report and Accounts 2011-2012

SECTION 10: Financial Statements
Pension costs
The Principal Civil Service Pension Scheme (PCSPS) is an unfunded multi-employer defined benefit
scheme but the Agency is unable to identify its share of the underlying assets and liabilities. The scheme
actuary valued the scheme as at 31 March 2007. You can find details in the resource accounts of the
Cabinet Office: Civil Superannuation (www.civilservice.gov.uk/pensions).
For 2011-12, employers’ contributions of £19,102,015 were payable to the PCSPS (2010-11 £19,928,976)
at one of four rates in the range 16.7% to 24.3% of pensionable pay, based on salary bands. The Scheme
Actuary reviews employer contributions usually every four years following a full scheme valuation. The
contribution rates are set to meet the cost of the benefits accruing during 2011-12 to be paid when the
member retires and not the benefits paid during this period to existing pensioners.
Employees can opt to open a partnership pension account, a stakeholder pension with an employer
contribution. Employers’ contributions of £105,204 (2010-11 £112,810) were paid to one or more of the
panel of three appointed stakeholder pension providers.
Employer contributions are age-related and range from 3% to 12.5% of pensionable pay. Employers also
match employee contributions up to 3% of pensionable pay. In addition, employer contributions of £7,001
(2010-11 £7,852) 0.8% of pensionable pay, were payable to the PCSPS to cover the cost of the future
provision of lump sum benefits on death in service or ill health retirement of these employees.
Contributions due to the partnership pension providers at the balance sheet date were £13,253.
Contributions prepaid at that date were £nil.
No individuals retired early on ill-health grounds; the total additional accrued pension liabilities in the year
amounted to £nil.
3 (b) Average number of persons employed
2011-12 2010-11
Permanent
staff Others Total Total
Staff funded from administration budgets 518 - 518 1,137
Staff funded from programme budgets
Traffic Officer staff 1,652 - 1,652 1,742
Direct support to front line projects and
service delivery 948 10 958 398
Staff engaged on capital projects 344 3 347 465
Average FTE persons employed 3,462 13 3,475 3,742
Over the course of the financial year, the actual full time equivalents (FTE) reduced from 3,564 to 3,397.
See Note 1.10 for details of administration and programme classifications.
Highways Agency Annual Report and Accounts 2011-12