Preparing your annual accounts disclosure
The following text template has been produced to help you with disclosures in your annual report and accounts for multi-employer plans (as described in IAS19, paragraph 148). Your participation in the scheme (see point d) section (v) below) can be shown by calculating your proportion of the total employer contributions made to the scheme.
To help with your calculation, note that the total employer contributions received for the NHS Pension Scheme (Scotland) in the year to 31 March 2019 were £791.8 million (see note 3 in the pension scheme accounts). Contributions collected in the year to 31 March 2020 will be published in December 2020.
IAS 19 Multi-employer plans 148
(a) The (name of body) participates in the NHS Pension Scheme (Scotland). The scheme is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary. The last four-yearly valuation was undertaken as at 31 March 2016. This valuation informed an employer contribution rate from 1 April 2019 of 20.9% of pensionable pay and an anticipated yield of 9.6% employees contributions.
(b) (name of body) has no liability for other employers’ obligations to the multi-employer scheme.
(c) As the scheme is unfunded there can be no deficit or surplus to distribute on the wind-up of the scheme or withdrawal from the scheme.
(i) The scheme is an unfunded multi-employer defined benefit scheme.
(ii) It is accepted that the scheme can be treated for accounting purposes as a defined contribution scheme in circumstances where the (name of body) is unable to identify its share of the underlying assets and liabilities of the scheme.
(iii) The employer contribution rate for the period from 1 April 2019 is 20.9% of pensionable pay. The employee rate applied is variable and is anticipated to provide a yield of 9.6% of pensionable pay.
(iv) While a valuation was carried out as at 31 March 2016, it is not possible to say what deficit or surplus may affect future contributions. Work on the valuation was suspended by the UK Government pending the decision from the Court of Appeal (McCloud (Judiciary scheme)/Sargeant (Firefighters’ Scheme) cases) that held that the transitional protections provided as part of the 2015 reforms was unlawfully discriminated on the grounds of age. The cost cap will be reconsidered once the final decision on a remedy and how this affects the NHS Pension Scheme (Scotland) is known and its impact fully assessed in relation to any additional costs to the scheme.
(v) (name of body)’s level of participation in the scheme is x% based on the proportion of employer contributions paid in 2018-19.