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78 City of Glasgow College Annual Report & Accounts 2020-21
CITY OF GLASGOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
12 months ended12 months ended
FOR THE 12 MONTHS ENDED 31 JULY 2021 31 July 2021 31 July 2020
£000 £000
23 PENSION COMMITMENTS
College Pension Costs
SPF 2,598 2,428
STSS 5,752 5,578
Unfunded Pensions 36 248
Pension Charge 4,347 2,259
Total Pension Costs 12,733 10,513
Scottish Teachers' Superannuation Scheme (STSS)
Valuation date 31 March 2016
Valuation method Project Unit
Value of notional assets £21,500 million
Rate of Return (Discount rate) 4.5%
Salary scale increases per annum
Pension increases per annum 2.0%
For the period 1 August 2020 to 31 July 2021, the employee contribution rate was 5.5% to 8.3%
dependant on salary.
The pension costs are assessed in accordance with the advice of independent qualified actuaries.
A valuation of the STSS scheme was carried out as at 31st March 2016. Employer contribution
rates are reviewed every four years following a scheme valuation from the Government actuary,
with further changes made as a result of interim reviews. The employer's contribution rate was
17.2% of pensionable pay from 1 September 2015 but has risen to 23% from 1 September 2019.
The College's employees belong to one of the two principal pension schemes, the Scottish
Teachers Superannuation Scheme (STSS) and the Strathclyde Pension Fund (SPF).
The STSS is a multi-employer pension scheme and the Scottish Public Pensions Agency have
indicated that at the moment they are not able to identify the net share of underlying assets and
liabilities for each employer on a "consistent and reasonable basis". Therefore in accordance with
FRS 102, contributions to the scheme are accounted for as if it were a defined contribution
scheme.
The Scottish Teachers' Superannuation Scheme is an unfunded defined benefit scheme.
Contributions on a pay as you go basis are credited to the Exchequer under arrangements
governed by the Superannuation Act 1972. A notional asset value is ascribed to the Scheme for
the purpose of determining contribution rates.
The pension cost is assessed every four years in accordance with the advice of the government.
CPI inflation plus 2.2%