Rnib group annual report and financial statements 2012/13
Analysis of net assets between funds
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20. Analysis of net assets between funds
21. Pension costsThe RNIB Group pension arrangements comprise those of RNIB and the associated charities, Action and CVV. A summary of the movement in pension assets and liabilities for the Group’s defined benefit pension funds is shown below:
RNIB The RNIB Retirement Benefits Pension Scheme (RBPS) is partly defined benefit and partly defined contribution. Members joining before 1 April 2005 are wholly defined benefit, with those members joining after, having a hybrid of defined benefit and defined contribution. The assets of the Scheme are held in a separate fund, under control of its trustees, to which RNIB has no access. A salary sacrifice arrangement was introduced 1 July 2010 whereby the member’s salary is reduced by the amount of the member contribution and in return the employer makes an equivalent contribution to the Scheme. An actuarial valuation was carried out at 31 March 2012 by the Scheme’s actuaries “Aon Hewitt”, using the projected unit method. The valuation disclosed that the market value of the Scheme’s assets (excluding Voluntary Contributions) at that date was £149million, and that there was a deficit (calculated as the excess of the market value of the Scheme’s assets to the value of its past service ongoing liabilities, with allowance for future pay increases) of £10.1million. Contributions by RNIB on the defined benefit element of the scheme increased to 12.9 per cent of pensionable salaries. In addition RNIB and Action share the administrative costs of the Scheme. As a part of the recovery plan RNIB agreed to make additional contributions of £830,000 a year until 30 June 2018. The pension scheme Trustees have considered whether the measure used for inflation linked increases should be based on CPI rather than RPI. Given the scheme rules, it has been decided to continue to use RPI. Following the merger with NLB, RNIB also offers the Pensions Trust’s Growth Plan. The Growth Plan is a multi employer pension plan under which contributions are invested in personal funds which have a capital guarantee and convert to a pension on retirement. No contributions are currently required into the Plan, but the Pensions Trust has advised that in the event of a withdrawal from the Plan, or in the event of the Pensions Trust being wound up, RNIB would have liability to pay a share of the accumulated deficit in the Plan, which is estimated at £937,815 based on the valuation of the Plan as at 31 December 2012. The next full actuarial valuation will be carried out during 2014. RNIB also participates in the Teachers' Pension scheme, a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers' Pension Scheme is an unfunded scheme. Contributions on a “pay as you go” basis are credited to The Exchequer under arrangements governed by The Superannuation Act 1972. Action Action participates in five pension schemes and the assets of all the schemes are held separately from those of the Charity. Scheme number one is the Action Defined Benefit Scheme which was offered through the Pensions Trust. The scheme has been closed to new members since 1 October 1997. Scheme number two is the Action for Blind People money purchase scheme and is open to existing and new employees. It is currently substantially all invested in the Pensions Trust Growth Series 3 Scheme. Due to its capital guarantee, this scheme differs in some important respects from a standard Defined Contribution Scheme, and following legislation in 2011 is now classified legally as a Defined Benefit Scheme. Action is unable to identify, on a reasonable and consistent basis, its share of the underlying assets because the Pensions Trust does not provide such information as this is unavailable on a disaggregated basis. Accordingly due to the nature of the Scheme, Action has accounted for contributions as if the scheme were a Defined Contribution Scheme. Members contributions are not fixed, employees are able to make contributions up to 10 per cent of their salaries. Scheme number three is a defined benefit scheme operated by Wiltshire County Council and related to staff transferred from Shelwork Industries on 1 April 2000. The Shelwork factory operation has ceased trading and therefore the majority of the members of the scheme are no longer employees of Action. Scheme number four is the RNIB Retirement Benefits Pension Scheme of which Action became an Employer on 1 April 2009 pursuant to the Transfer of Undertakings Agreement whereby 118 scheme members transferred by TUPE to Action. With regard to Action it closed to new members with immediate effect from 1 April 2009. Under the Association Agreement with RNIB, the deficit on the scheme disclosed by the Triennial Actuarial Valuation at 31 March is the responsibility of RNIB. The FRS17 review of the whole scheme at 31 March 2013 produced a surplus of which £15,000 (2012: deficit £46,000) is attributable to Action. Action also participates in the Teachers' Pension Scheme, a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers' Pension Scheme is an unfunded scheme. Contributions on a “pay as you go” basis are credited to the Exchequer under arrangements governed by the Superannuation Act 1972. CVV CVV is a participant within the defined benefit scheme “Cardiff and Vale of Glamorgan Pension Fund” which is part of the Local Government Pension Scheme. The following tables, and narrative, provide the detailed disclosures that relate to the RNIB Retirement Benefit Scheme. The column headed “Associated charities” refers to Action’s schemes one and three, together with that for CVV. Together these explain the Group’s pension costs.
The assets of the RNIB Scheme are held with Legal and General plus BlackRock (for equities, bonds and properties), The defined benefit assets are invested according to the Statement of Investment Principles agreed by the Scheme Trustees. This sets a benchmark allocation of assets. The defined contribution assets are invested in line with member instructions. RNIB employs a building block approach in determining the long-term rate of return on pension plan assets. Historical markets are studied and assets with higher volatility are assumed to generate higher returns consistent with widely accepted capital market principles.
The above service cost excludes any RNIB contributions paid to the defined contributions section of the Scheme. The Charity contributed to the Scheme at the rate of 12 per cent of pensionable salaries. These rates include the cost of death in service insurance cover. During the year the Charity contributed £4,922,000 (2012: £4,888,000) to the Scheme, and in the next year the Charity expects to contribute £4,870,000. In addition RNIB and Action share the administrative costs of the Scheme. In 2010, as a part of the recovery plan it was agreed that RNIB would make additional annual contributions of £1million over 17 years, and these contributions are included in the amounts that the Charity contributed to the Scheme, referred to above. From 1 April 2013 these additional contributions will reduce to £830,000 per year until 30 June 2018. Employer contributions will increase from 12 per cent to 12.9 per cent on the defined benefit element of the scheme. From 1 July 2010 under the RNIB salary sacrifice arrangement employer contributions and service cost include the member salary sacrifice contributions while member contributions are shown as £nil. RNIB also makes contributions to a number of other pension schemes including the Teachers' Pension Scheme. The Teachers' Pension Scheme is a defined benefit scheme for employees who were formerly employed by local education authorities. The Teachers' Pension Scheme is an unfunded scheme. Contributions on a “pay-as-you-go” basis are credited to the Exchequer under arrangements governed by the Superannuation Act 1972. RNIB made contributions to the Teachers’ Pension Scheme for 27 employees (2012: 30) totalling £123,000 (2012: £134,000). In addition Action made contributions for two employees totalling £13,000 (2012: three employees totalling £16,000) to the Teacher’s Pension Scheme.
In accordance with the requirements of FRS17 the full actuarial valuation at 31 March 2009 was updated by Aon Hewitt at 31 March 2013. The principal assumptions they used for this purpose are summarised in the following table.
For the RNIB scheme the mortality assumptions are based on standard mortality tables which allow for future mortality improvements. The assumptions are that a member currently aged 60 will live on average for a further 27.5 years if they are male and for a further 29.6 years if they are female. For a member who retires in 2033 at age 60 the assumptions are that they will live on average for a further 28.5 years after retirement if they are male and for a further 31.4 years after retirement if they are female, as last year. For schemes offered by the Associated Charities, for current Pensioners, their life expectancy beyond the pensionable age of 65 ranges between 21.3 to 23.9 years if they are male, and 23.6 to 26.7 years if they are female. For future Pensioners their life expectancy beyond the pensionable age of 65 ranges between 23.3 to 25.6 years if they are male and 25.5 to 28.7 years if they are female.
The historical scheme information under “Associated charities” for 2009 excludes some information relating to CVV as this was not available. 22. Group commitmentsa. Capital At the year-end, RNIB has no outstanding commitments (2012: £nil). At the year-end Action has outstanding commitments amounting to £84,800 (2012: £68,800). At the year-end CVV has no outstanding commitments (2012: £1,150,000). b. Operating leases At the year-end, the Group had the following annual commitments amounting to £1,503,000 (2012: £1,587,000) under non-cancellable operating leases.
23. Contingent liabilitiesAs at 31 March 2013 other than the Pensions Trust Growth Plan contingent liability disclosed in the “Pension costs” note (Note 21) there is a liability in respect of CVV relating to the Cardiff and Vale County Council Pension Scheme additional employers contributions amounting to £62,800 (2012: £59,800). 24. Grants receivableDuring the year, RNIB received a number of grants and other funding resources, which are required by the donors to be shown in our annual financial statements.
Policy on relationships with pharmaceutical companiesRNIB provides services to those with sight problems, works to prevent avoidable blindness, and campaigns for positive change. These functions will not be influenced in any way by our relationship with pharmaceutical companies or by acceptance of grants or sponsorships from them. We will withdraw from any initiative that jeopardises our independence. RNIB will not embark on, or continue with, any sponsorship arrangement or collaborative venture which might damage its independence. Alcon, Allergan, Bayer, Novartis Pharmaceuticals UK Ltd and Pfizer are all pharmaceutical companies. Directory: sites -> default -> files files -> Answer True False 2 points Question 2 files -> Northern England’s set-jetting locations files -> Nstructions for Acquiring Excess Equipment online, through the 1033 Program files -> Occupational health and safety files -> The Black Panther Party’s Ten Point Program files -> International programs roel profile files -> Fermi Questions a guide for Teachers, Students, and Event Supervisors Lloyd Abrams, Ph. D. DuPont Company, cr&D/ccas experimental Station Wilmington, de 19880 files -> Personal Information Name: Maha Al-Ammari Nationality: Saudi Relationship Status Download 1.49 Mb. Share with your friends:
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