NIPS Annual Report and Accounts 2012-13 - Department of Justice

2012-2013
16. Provisions for liabilities and charges (continued)
Analysis of expected timing of discounted flows*
Voluntary Early *Injury Litigation Hearing Equal Other Total
Early Departure Awards Loss Opportunities
Retirement Costs
Scheme
£000 £000 £000 £000 £000 £000 £000 £000
No later than one year - 29 365 1.279 1,686 120 21 3,500
Later than one year and not
more than five years 1040 73 1,374 302 21 - - 2,810
Later than five years 118 - 5,536 19 - - - 5,673
At 31 March 2013 1158 102 7,275 1,600 1,707 120 21 11,983
* The only cash flows shown as discounted in the table above relate to the injury awards as NIPS do not discount
other provisions as the time value of money is considered immaterial and therefore these cash flows are disclosed as
undiscounted.
The provisions for liabilities and charges represent the best estimate of the amount payable at the date of the
Statement of Financial Position.
Voluntary Early Retirement Scheme
The provision for Voluntary Early Retirement Scheme (VER) costs relates to the early retirement payments arising in
respect of employees who depart early from Service under the Scheme. The provision consists of additional pension
costs due to the PCSPS (NI), which the Northern Ireland Prison Service provides for when the VER becomes binding
by establishing a provision for the estimated payments. These costs are payable over the period between early
departure and normal retirement date for the respective employees. The provision runs through to 2018-19.
Early Departure Costs
The provision for Early Departure Costs relates to additional compensation payments and flexible early retirement
payments arising in respect of employees who depart early from service. The provision consists of additional pension
costs due to the PCSPS (NI), which the Northern Ireland Prison Service provides for when the early retirement
programme becomes binding by establishing a provision for the estimated payments. These costs are payable over
the period between early departure and normal retirement date for the respective employees. The provision runs
through to 2015-16.
Injury Awards
From 1 April 2006 all benefits payable under the Civil Service Injury Benefit Scheme (CSIBS) (Northern Ireland)
relating to the Northern Ireland Prison Service are charged to the Northern Ireland Prison Service by Civil Service
Pensions (Northern Ireland) on a monthly basis. The allowance is payable to the former employee for life. An
estimated life expectancy of 70 years has been applied. Provision is made for the costs of providing injury awards to
employees based on the current number of injury awards, and also on estimated life expectancy of these pensioners.
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