The different approaches used for different employers Type of employer Scheduled Bodies Community Admission Bodies and Transferee Admission Bodies Designating Employers Sub-type Colleges, Academies Open to new Closed to new (all) Authorities Housing entrants entrants Associations etc Basis used Ongoing, assumes long-term Fund participation Ongoing, but may move to basis” - Ongoing, assumes fixed contract term in “gilts (see ) see the Fund (see ) Future service rate Projected Unit Credit approach (see ) Attained Age Projected Unit Credit approach (see ) approach (see ) Stabilised rate? Yes - see Yes - see Yes No No No Maximum deficit 20 years 20 years 20 20 years Shorter of: Shorter of: recovery period Future working Future working lifetime of employees, and – Note (c) lifetime of Outstanding contract term employees, and 15 Deficit recovery Monetary Monetary Monetary % of payroll or Monetary amount % of payroll or monetary amount payments Note (d) Amount Amount Amount Monetary – Amount Treatment of surplus Covered by Covered by Preferred Preferred approach: contributions kept at Reduce contributions by spreading the stabilisation stabilisation approach: future service rate. However, reductions surplus over the remaining contract term arrangement arrangement contributions may be permitted by the Admin. Authority kept at future service rate. However, reductions may be permitted by the Admin. Authority Phasing of Covered by Covered by Covered by 3 years 3 years None contribution changes stabilisation stabilisation stabilisation - - arrangement arrangement arrangement Review of rates Administering Authority reserves the right to review contribution rates and amounts, and the Particularly reviewed in last 3 years of – Note (f) level of security provided, at regular intervals between valuations contract New employer n/a n/a
The different approaches used for different employers Type of employer Scheduled Bodies Community Admission Bodies and Designating Employers Transferee Admission Bodies Sub-type Authorities Colleges, Housing Associations etc Academies Open to new entrants Closed to new entrants (all) Basis used Ongoing, assumes long-term Fund participation (see ) Ongoing, but may move to “gilts basis” - see Ongoing, assumes fixed contract term in the Fund (see ) Future service rate Projected Unit Credit approach (see ) Attained Age approach (see ) Projected Unit Credit approach (see ) Stabilised rate? Yes - see Yes - see Yes No No No Maximum deficit recovery period – Note (c) 20 years 20 years 20 20 years Shorter of: Future working lifetime of employees, and 15 Shorter of: Future working lifetime of employees, and Outstanding contract term Deficit recovery payments – Note (d) Monetary Amount Monetary Amount Monetary Amount % of payroll or Monetary Amount Monetary amount % of payroll or monetary amount Treatment of surplus Covered by stabilisation arrangement Covered by stabilisation arrangement Preferred approach: contributions kept at future service rate. However, reductions may be permitted by the Admin. Authority Preferred approach: contributions kept at future service rate. However, reductions may be permitted by the Admin. Authority Reduce contributions by spreading the surplus over the remaining contract term Phasing of contribution changes Covered by stabilisation arrangement Covered by stabilisation arrangement Covered by stabilisation arrangement 3 years - 3 years - None Review of rates – Note (f) Administering Authority reserves the right to review contribution rates and amounts, and the level of security provided, at regular intervals between valuations Particularly reviewed in last 3 years of contract New employer n/a n/a
cornwall-pension-fund-agreed-fss-march-2014.docx