Statement of accounts 2006-07

47Notes to the Police Officer Pension Fund AccountThe Police Officer Pension Fund combines the 3 Additional incomeaccounting transactions of two pensions schemes These consist of MPA income for ill health retirements,for Metropolitan Police Officers. These are the Police 30 plus scheme contributions and refund of formerPension Scheme, which was set up in 1987 and the commissioners and widows pensions.New Police Pension Scheme, which was created4 Employer additional fundingby the Home Office under the Police PensionsRegulations 2006.This sum represents additional funding requiredto provide for payment to pensioners. It representsThe Police Officer Pension Fund which is managed byadditional funding of £13 million received by the MPSthe Metropolitan Police Service has been set up forin 2006-07 and a statutory transfer from the policethe specific purpose of administering the collection offund in respect of a further sum of £25 million to becontributions, the payment of pensions and paymentreceived in 2007-08. Both sums being paid by theor refund to central government for the balanceHome Office.outstanding for each year. The Fund does not hold anyinvestment assets nor does it reflect the liabilities of 5 Transfersboth Schemes to pay present and future pensioners. These represent lump sums transferred to and fromThe fund will be paid sufficient monies from the Home other pensions schemes depending on whether theOffice in 2007-08 to cover the deficit in year.police officers were joining or leaving the MPS.Notes to the Financial StatementsThese accounts have been prepared using CIPFA’sPension SORP and the SORP principles adoptedfor the statements of the MPA. These financialstatements do not take account of liabilities to paypensions and other benefits after the period end. Theprinciples contained in the draft Police Pension FundRegulations 2007 have been adopted prior to theircommencement.Details of the accounting policies of the MPA can beseen on page 17 to 20. The MPA administers theFund through its accounting and banking systems.Details of the two Schemes’ actuarial report can beseen on page 39 in the notes to the balance sheet.The cost of pensions can be seen on page 27 in note5 to the income and expenditure account.These accounts are audited by the Audit Commissionand their opinion is included in that of the MPA onpage 5.Revenue Account Notes1 Employer contributionsEmployer contributions are calculated at 24.6% ofpolice officer pensionable pay.2 Officer contributionsContributions by officers are deducted from officerwages at a rate of 11% of pensionable pay.6 Other paymentsThese consist of contribution equivalent payments,superannuation refunds and lump sum deathbenefits.7 Related party transactionsAs previously stated the Fund is administered solelyby the MPS and as such this organisation is the onlyrelated party to the Fund, thus all the transactionsshown on the revenue statement having beenprocessed through the MPS.8 Additional Voluntary ContributionsAdditional voluntary contributions made by Officersamounted to £60,755 for 2006-07.9 Members of the SchemeThe Pension Fund also administers pensions on behalfof members of H M Inspectorate of Constabulary.There are 4 HMIC staff who are working membersof the scheme and 20 HMIC pensioners and 6dependants pensioners.Asset Statement notesa There were no accruals or prepayments onpayments to pensioners or contributions receivedfrom MPS or Police Officers.All amounts due from Home Office in respect offunding shortfalls are the responsibility of the MPA andaccordingly have been included in the balance sheetof the MPA.