Archived decisions
costs, the charge for council tax-setting purposes is based on the cash paid in the year. In 2007/08 contributions paid to cover the cost of early retirements were: 2007/08 LGPS Teachers Total £'000 £'000 £'000 Early retirements in 2007/08 929 51 980 Early retirements in previous years 2,658 2,667 5,325 for which payments are still being made Total payments in 2007/08 3,587 2,718 6,305 7d Adjustments to the Income and Expenditure Account In accordance with FRS 17 adjustments to the income and expenditure account are set out below: 2006/07 2007/08 £'000 £'000 Included in the Income and Expenditure Account: Current service cost of pensions 58,630 60,350 Charge to non-distributed costs for early 1,186 14,146 retirement in the year Interest cost on pension liabilities (note i) 77,520 89,140 Expected return on Pension Fund assets (note ii) -63,430 -72,620 16,520
73,906 91,016
Excluded from the Income and Expenditure Account: Employers' contributions to the -46,045 -51,548 Local Government Pension Scheme Added years and early retirement cashflows -4,941 -5,598 in the year -50,986 -57,146 Net adjustment to the Income and Expenditure Account offset by pension reserve contribution 22,920 33,870
46 note i - interest cost is the amount needed to unwind the discount applied in calculating the current service cost. As members of the scheme are one year older and one year closer to receiving their pension, the provisions made at present value in previous years for their retirement costs need to be uplifted by a year's discount to keep pace with current values note ii - the expected return is a measure of the return (income from dividends, interest etc.) expected in the long-term on the investment assets held by the scheme for the year. 7e Assets and liabilities relating to retirement benefits An independent actuary (Hewitt, Bacon & Woodrow) assessed the share of the assets and liabilities of the Hampshire LGPS scheme attributable to the County Council and also the unfunded benefits for teachers and LGPS members. The actuary estimated that the following overall assets and liabilities for pension costs should be included in the balance sheet. 31 March 31 March 2007 2008 £'000 £'000 Estimated liabilities in the scheme Hampshire Pension Scheme -1,601,300 -1,431,240 Unfunded Liabilities: Teachers -39,500 -36,280 Other Staff -29,100 -26,770 -1,669,900 -1,494,290
Estimated assets in the scheme 1,060,800 1,055,430 Net liability -609,100 -438,860 The net deficit on the local government scheme will be made good by increased contributions over the remaining working life of employees, as assessed by the scheme actuary. 47 |
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