Item 8 - Sheffield Health and Social Care

The value of transactions with board members and key staff members in 2012/13 is £nil (2011/12 – £nil).Details of Directors’ remuneration and pensions can be found at note 1.2 of the accounts. Disclosuresrelating to salaries of board members are given in Note 5.5 and details of exit packages in note 5.4. Furtherdetails of executive and non executive directors’ salaries and pensions can be found in the RemunerationReport in the Annual Report.The value of receivables and payables balances held with related parties as at the date of the statement offinancial position is given below:Receivables£00031 March 2013 31 March 2012Payables£000Receivables£000Payables£000Department of Health 66 - - 18Other NHS bodies 1,666 644 2,743 840Charitable funds - - - -Other bodies (including WGA) 4,456 3,285 3,201 3,5576,188 3,929 5,944 4,415Value of balances (other than salary) with boardmembers and key staff members at 31 March 2013is £nil (31 March 2012 – £nil).The value of balances (other than salary) withrelated parties in relation to the provision forimpairment of receivables as at 31 March 2013 is£9,223 (31 March 2012 – £nil). In addition, thevalue of balances (other than salary) with relatedparties in relation to the writing off of receivablesduring 2012/13 is £nil (2011/12 – £nil).The Department of Health is the Trust’s parent bodyand is regarded as a related party. During the year,the Trust has had a significant number of materialtransactions with the Department, and with otherentities for which the Department is regardedas the parent Department. These entities arelisted below:• Yorkshire and the Humber Strategic HealthAuthority• Sheffield Primary Care Trust (NHSSheffield)• Barnsley Primary Care Trust• Derbyshire County Primary Care Trust• Rotherham Primary Care Trust• Derbyshire Healthcare NHS Foundation Trust• Nottinghamshire Healthcare NHS Trust• Rotherham Doncaster and South Humber NHSFoundation Trust• Sheffield Children’s Hospital NHS FoundationTrust• Sheffield Teaching Hospitals NHS FoundationTrust• Leeds Partnership NHS FT• NHS Litigation Authority• NHS Business Services AuthorityIn addition, the Trust has had a number of materialtransactions with other Government departmentsand other central and local government bodies.Most of these transactions have been with HMRevenue and Customs, the NHS Pension Scheme aswell as with Sheffield City Council in respect of jointenterprises and the South Yorkshire Pension Scheme.26. South Yorkshire pensions fund –Retirement benefit obligationsThe total defined benefit pension loss for 2012/13 inrespect of the local government scheme administeredby South Yorkshire Pensions Authority was £420,000(the year ended 31 March 2012 a loss of £369,000).A pension deficit of £3,867,000 is included in thestatement of financial position as at 31 March 2013(31 March 2012 – £2,714,000 deficit).The terms of the current partnership agreementwith Sheffield City Council provide that any longterm pension liability arising from the scheme willbe funded by the Council, with the exception ofany pension changes which relate to an increasein salary in excess of any local government gradingagreements. The impact on the current and prior yearstatement of consolidated income andtaxpayers equity relating to the application of IAS19 – ‘Employee Benefits’ within the accounts of theTrust is negated by the inclusion of a correspondingnon-current receivable with the Council. As at31 March 2013, the deficit on the scheme was£3,867,000 (31 March 2012 – £2,714,000 deficit),the majority of which is offset by a non-currentreceivable of £3,402,960 (31 March 2012 –£2,388,000).Estimation of the net liability to pay pensionsdepends on a number of complex judgements. A firmof consulting actuaries is engaged by South YorkshirePensions Authority to provide expert advice aboutthe assumptions made, such as mortality rates andexpected returns on pension fund assets.With effect from 2011, the UK Governmentannounced that pension increases or revaluationsfor public sector schemes should be based on theConsumer Prices Index (“CPI”) measure of priceinflation, rather than the Retail Prices Index (“RPI”)measure of price inflation.The main actuarial assumptions used at the date ofthe statement of financial position in measuring thepresent value of defined benefit scheme liabilities are:31 March2013%31 March2012%Rate of inflation 2.4 2.5Rate of increase in salaries 4.15 4.25Rate of increase in pensions and deferred pensions 2.4 2.5Discount rate 4.2 4.9Expected rate of return on assets 0.5 - 7.0 0.5 - 7.0The current life expectancies at age 65 underlying the accrued liabilities for the scheme are:31 March2013Years31 March2012YearsNon retired member – Male (aged 65 in 20 years time) 23.7 22.8Non retired member – Female (aged 65 in 20 years time) 26.6 25.8Retired member – Male 21.8 21.5Retired member – Female 24.7 24.2189190