Annual Report 2012 - the Jersey Financial Services Commission

Notes to the financial statements for the year ended31 December 201214. Pension costsa) Staff initially employed by the Commission before 1 January 1999 are members of the Public EmployeesContributory Retirement Scheme (“PECRS”) which, whilst a final salary scheme, is not a conventionaldefined benefit scheme because the employer is not necessarily responsible for meeting any ongoing deficitin the scheme. The assets are held separately from those of the States of Jersey. Contribution rates aredetermined by an independent qualified actuary so as to spread the costs of providing benefits over themembers’ expected service lives.Salaries and emoluments include pension contributions for staff to this scheme amounting to £52,000(2011 - £67,000). The decrease is due to staff retirement.The Commission has adopted Financial Reporting Standard 17 “Retirement Benefits” (“FRS17”).Because the Commission is unable to readily identify its share of the underlying assets and liabilities ofPECRS under FRS 17, contributions to the scheme have been accounted for as if they are contributions toa defined contribution scheme.The contribution rate paid by the Commission during the year was 13.6% of salary, and this rate isexpected to continue to be payable during 2013.Actuarial valuations are performed on a triennial basis, the most recent published valuation being as at 31December 2010. The main purposes of the valuation are to review the operation of the scheme, to reporton its financial condition, and to confirm the adequacy of the contributions to support the scheme benefits.The conclusion of the latest published valuation is that there is a surplus in the scheme assets at thevaluation date of £40.6 million. Because the scheme is accounted for as if it is a defined contributionscheme, no account has been taken of the Commission’s potential share of this surplus.In addition to this, as at the date of the valuation, there was a debt due to the scheme from the States ofJersey that relates to the period pre-1987. The Commission settled its share of this liability during 2005.Copies of the latest Annual Accounts of the scheme, and of the States of Jersey, may be obtained from theStates Treasury, Cyril Le Marquand House, The Parade, St Helier JE4 8UL.b) Staff initially employed by the Commission after 1 January 1999 are members of the Jersey FinancialServices Commission Staff Pension Scheme, which is a defined contribution scheme whose assets areheld separately from those of the Commission. The administration of the scheme is carried out byindependent administrators, and the Commission has appointed independent managers for themanagement of the investments.Salaries and emoluments include pension contributions for staff to this scheme amounting to £562,000(2011 - £543,000). The increase is due to rising membership numbers.Particulars of the scheme may be obtained from The Secretary, Jersey Financial Services Commission,PO Box 267, 14-18 Castle Street, St Helier JE4 8TP.42 | ANNUAL REPORT 2012