Teachers’ Pension Scheme
Following publication of the 2012 actuarial valuation of the TPS in June 2014, academy trusts can now update the narrative text in disclosure note 28 to reflect the valuation. The EFA encourages trusts to use the amended text to enhance their TPS disclosures in note 28, but only where it is practical and feasible to do so (for example, where financial statements have not yet been approved). This disclosure note does not affect any balances in academy trusts’ financial statements and any amendment should not result in any additional audit work or testing by trusts’ auditors.
This text below should replace all three paragraphs under the heading ‘Valuation of the Teachers’ Pension Scheme’ on pages 57 and 58 of the 2013 to 2014 Academies Accounts Direction:
Note 28 – Pensions and Similar Obligations (amended)
The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education on 9 June 2014. The key elements of the valuation and subsequent consultation are:
- employer contribution rates set at 16.48% of pensionable pay (including a 0.08% employer administration charge (currently 14.1%);
- total scheme liabilities for service to the effective date of £191,500 million, and notional assets of £176,600 million, giving a notional past service deficit of £14,900 million; and
- an employer cost cap of 10.9% of pensionable pay will be applied to future valuations.
The new employer contribution rate is applicable from 1 April 2015 and will be implemented for the TPS from September 2015.
A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.