The Learning and Skills Councils Annual Report and Accounts for ...

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Unaudited information Salary For the purposes of the analysis, ‘salary’ includes the following where applicable: gross salary payable compensation or redundancy performance pay or bonuses other allowances, and • overtime payable. Benefits in kind The monetary value of benefits in kind covers any benefits provided by the employer and treated by HM Revenue and Customs as a taxable emolument. The benefits provided by the LSC to national and regional directors disclosed on the previous pages relate to lease cars. Civil Service pensions Pension benefits are provided through the Civil Service pension arrangements. From 1 October 2002, civil servants may be in one of three statutory-based ‘final salary’ defined benefit schemes (classic, premium and classic plus). The schemes are unfunded, with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium and classic plus are increased annually in line with changes in the Retail Prices Index. New entrants after 1 October 2002 may choose to join either premium or a good-quality ‘money purchase’ stakeholder arrangement with a significant employer contribution (partnership pension account). Employee contributions are set at the rate of 1.5 per cent of pensionable earnings for classic and 3.5 per cent for premium, nuvos and classic plus. Benefits in classic accrue at the rate of 1/80th of pensionable salary for each year of service. In addition, a lump sum equivalent to three years’ pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum (but members may give up (commute) some of their pension to provide a lump sum). Classic plus is essentially a variation of premium, but with benefits in respect of service before 1 October 2002 calculated broadly as per classic. Nuvos is a relatively new defined benefit scheme where employee contributions are currently at 3.5 per cent of pensionable pay. Pension benefits build up at the rate of 2.3 per cent of pensionable earnings per annum and the option is available at retirement to convert up to 25 per cent of total notional pension benefits into a lump sum. The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 3 per cent and 12.5 per cent (depending on the age of the member) into a stakeholder pension product chosen by the employee. The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3 per cent of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.8 per cent of pensionable salary to cover the cost of centrally provided risk benefit cover (death in service and ill-health retirement). Further details of the Civil Service pension arrangements can be found at civilservice-pensions.gov.uk. Cash equivalent transfer values A cash equivalent transfer value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The CETV figures (and, from 2003–04, the other pension details) include the value of any pension benefit in another scheme or arrangement that the individual has transferred to the Civil Service pension arrangements 30 LSC Annual Report and Accounts 2009–10
and for which the Civil Service vote has received a transfer payment commensurate with the additional pension liabilities being assumed. They also include any additional pension benefit accrued to the member as a result of their purchasing additional years of pension service in the scheme at their own cost. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries and do not take account of any actual or potential reductions to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are drawn. Real increase in CETV This reflects the increase in CETV effectively funded by the employer. It takes account of the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period. Leadership and Governance Geoffrey Russell Chief Executive of Skills Funding, Department for Business, Innovation and Skills; and Accounting Officer for the Learning and Skills Council 19 July 2010 LSC Annual Report and Accounts 2009–10 31
Page 1: The Learning and Skills Council’s
Page 4 and 5: © Skills Funding Agency July 2010
Page 6 and 7: Chairman’s Statement Looking back
Page 8 and 9: This comes on top of another achiev
Page 10 and 11: So it is with both delight and some
Page 12 and 13: Our Targets and Achievements In the
Page 14 and 15: Management and Structure The Learni
Page 16 and 17: Taking Care of Our People To meet o
Page 18 and 19: We have had in place a comprehensiv
Page 20 and 21: Management Commentary Reporting of
Page 22 and 23: Year-end position 11. The net book
Page 24 and 25: 34. As Accounting Officer I confirm
Page 26 and 27: Components of remuneration The Chai
Page 28 and 29: Board members’ emoluments Audited
Page 30 and 31: Senior Management Group emoluments
Page 32 and 33: Senior Management Group pension ent
Page 36 and 37: Statement of the Chief Executive of
Page 38 and 39: 8. In 2008-09, the LSC failed to pr
Page 40 and 41: 28. During the past year, the Manag
Page 42 and 43: issues were incorporated into it. T
Page 44 and 45: • Following a referral to the IAI
Page 46 and 47: Data management 82. The Internal Au
Page 48 and 49: The Certificate and Report of the C
Page 50 and 51: Statement of Financial Position as
Page 52 and 53: Statement of Cash Flows for the yea
Page 54 and 55: Table 1: Summary of depreciation me
Page 56 and 57: Education Maintenance Allowance Edu
Page 58 and 59: 2 First-time adoption of IFRS £’
Page 60 and 61: Funding department Year ended 31 Ma
Page 62 and 63: Funding department Year ended 31 Ma
Page 64 and 65: 3b Programme expenditure by regiona
Page 66 and 67: 5a Staff costs Information in respe
Page 68 and 69: 6a Administration (other costs) Yea
Page 70 and 71: 9 Property, Plant and Equipment (i)
Page 72 and 73: 11a Trade receivables and other cur
Page 74 and 75: 13a Trade payables and other curren
Page 76 and 77: 15 Financial guarantee: Career Deve
Page 78 and 79: 17 Operating lease commitments Tota
Page 80 and 81: 22 Related party transactions Durin
Page 82 and 83: 23 Losses statement The LSC incurre
Page 84 and 85:
Glossary and Further Information Th
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Sector Skills Councils (SSCs) Indep
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