This suggested note is intended to assist employers with disclosures for multi-employer plans as described in IAS19 paragraph 148. Employers may wish to provide an indication of participation in the scheme by providing a proportion of the contributions paid.
We would suggest that employers use the portion of employer contributions they have paid to calculate their participation. The total employer contributions received for the Scottish Teachers' scheme in the year to 31 March 2016 were £384.7 from an average rate of 16.2417% (see note 3 in the scheme accounts). Contributions collected in the year to 31 March 2017 will be published in November 2017.
IAS 19 Multi-employer plans 148
(a) The (name of body) participates in the Scottish Teachers' Superannuation Scheme. 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 2012. The next valuation will be as at 31 March 2016 and this will set contribution rates from 1 April 2019.
(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 from 1 April 2015 will be 14.9% of pensionable pay. This increased to 17.2% from 1 September 2015. In 2015-16 this provided an average rate of 16.2417%. While the employee rate applied is a variable it will provide an actuarial yield of 9.6% of pensionable pay.
(iv) At the last valuation a shortfall of £1.3 billion was identified in the notional fund which will be repaid by a supplementary rate of 4.5% of employers pension contributions for fifteen years from 1 April 2015. This contribution is included in the 17.2% employers contribution rate.
(v) (We would suggest that employers use the portion of employer contributions they have paid to calculate their participation. The total employer contributions received for the Scottish Teachers' scheme in the year to 31 March 2016 were £384.7 million [see note 3 in the scheme accounts]. Contributions collected in the year to 31 March 2017 will be published in November 2017.)
(name of body) level of participation in the scheme is x% based on the proportion of employer contributions paid in 2015-16.