Annual Report 2006-2007 - Cafcass

The total staff cost includes a cost of £0.955m relating to
a voluntary early redundancy and retirement programme
in 2006–07. In total 29 employees were involved: eight
voluntary redundancies and 21 early retirements.
The average number of persons employed is shown as
full-time equivalents for National Office and regional staff
members on permanent or fixed-term contracts who are
paid through payroll.
The contribution rates reflect benefits as they are accrued,
not when the costs are actually incurred, and reflect past
experience of the scheme.
Ten employees participated in the PCSPS during 2006–07
(2005–06: 10) and none of these individuals were in a
partnership pension account or a stakeholder pension.
5 Pension costs (and see note 20)
Cafcass participates in the West Yorkshire Pension
Scheme and the Principal Civil Service Pension Scheme
(PCSPS). The West Yorkshire Pension Scheme is a multiemployer
defined benefit scheme in which Cafcass’ share
of the underlying assets and liabilities is not identified.
The contribution rate determined by the independent
fund actuaries, Mercer Human Resource Consulting, is
12.8%. This is based on service to Cafcass and ill health
retirements. Employer’s contributions to the Scheme for
the year amounted to £7.33m (including costs of £0.769m
relating to the voluntary early retirement programme)
with 1,769 employees participating in the scheme during
2006–07 (2005–06: £5.99m/1,803 employees).
The last independent actuarial valuation of the West
Yorkshire Pension Scheme was on 31st March 2004 and
revealed that the scheme was 82% funded in relation
to past service. The valuation is based on assets and
liabilities at 31st March 2004. Following the actuarial
valuation, the revised target employer contribution rate at
the end of a six-year phasing-in period was set at 14.5%.
The 2007–08 rate is 13.2%, based on further phasing
between 2008–09 and 2010–11, this means that the total
rate will be payable by 2010–11.
West Yorkshire Pension Scheme will be undergoing the
triennial fund valuation as at 31st March 2007. Regulatory
requirements mean that the valuation must be complete by
31st March 2008 and from this valuation, contribution rates
for the following three financial years to 2010–11 will be set
for all employers participating in the fund.
The PCSPS is an unfunded multi-employer defined benefit
scheme for which Cafcass is unable to identify its share
of the underlying assets and liabilities. A full actuarial
valuation was carried out as at 31st March 2003. Details
can be found in the resource accounts of the Cabinet
Office: Civil Superannuation (www.civilservice-pensions.
gov.uk).
For 2006–07, employers’ contributions of £0.087m (2005–
06: £0.079m) were payable to the PCSPS at one of four
rates in the range of 17.1% to 25.5% of pensionable pay,
based on salary bands. The scheme’s actuary reviews
employer contributions every four years following a full
scheme valuation. Rates increase from 2007–08 to three
rates between 19.5% and 25.5%.
Section 6: Accounts 2006–07 | 57