Preparing your annual accounts disclosure

We’ve produced a useful template to help with the disclosure you need to make in your annual report and accounts for multi-employer plans (as described in IAS19, paragraph 148).

Your participation in the Scottish Teachers’ Pension Scheme can be shown by calculating your proportion of the total employer contributions made to the scheme (see point d) section (v) in the template below).

You should base your calculation on the total employer contributions received for the Scottish Teachers’ Pension Scheme in the year to 31 March 2018 of £417.5 million (see note 3 in the scheme accounts). Contributions collected in the year to 31 March 2019 will be published in October 2019.

Suggested text

(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 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 for the period from 1 April 2015 was 14.9% of pensionable pay. This increased to 17.2% from 1 September 2015. While the employee rate applied is variable it will provide an actuarial yield of 9.8% 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) (name of body)’s level of participation in the scheme is x% based on the proportion of employer contributions paid in 2017-18.


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