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

5a Staff costs
Information in respect of board members’ and senior employees’ emoluments and pension entitlements is provided in the
Remuneration Report on pages 21 to 31.
Year ended
31 March 2010
£’000
Year ended
31 March 2009
£’000
The aggregate payroll costs for the LSC were as follows:
Salaries* 130,048 122,325
Social security* 11,452 10,817
Pension costs 24,120 24,179
Redundancies and payment in lieu of notice* 1,363 (14)
166,983 157,307
Other staff (includes agency/contract/seconded staff) 3,750 4,693
170,733 162,000
Staff costs related to programmes (35,834) (34,801)
Total staff costs 134,899 127,199
* Includes £3.9 million relating to the buy-out of staff benefits of staff transferring to local authorities, and £0.9 million
of severance costs as a consequence of Machinery of Government changes. These costs were separately funded by BIS
(£0.5 million) and DCSF (£4.3 million). See also note 23a.
5b Pension costs – Principal Civil Service Pension Scheme employer contributions
Pension benefits were provided through the Principal Civil Service Pension Scheme (PCSPS). The PCSPS is an unfunded
multi-employer defined benefit scheme. The LSC has been unable to identify its share of the underlying assets and
liabilities. The Scheme Actuary valued the scheme as at 31 March 2009. Details can be found in the resource accounts of
the Cabinet Office: Civil Superannuation (civilservice-pensions.gov.uk).
For 2009–10, employers’ contributions of £22,973,163 were paid to the PCSPS by 31 March 2010 (2008–09: £23,419,088)
at one of four rates in the range 16.7 per cent to 24.3 per cent of pensionable pay (2008–09: 17.1 per cent to 25.5 per
cent), based on salary bands. The Scheme Actuary reviews employer contributions every four years following a full scheme
valuation.
The contribution rates were set to meet the cost of the benefits accruing during 2009–10 to be paid when the member
retires, and not the benefits paid during this period to existing pensioners.
Employees could opt to open a partnership pension account, a stakeholder pension with an employer contribution.
Employers’ contributions of £171,363 (2008–09: £171,009) were paid to one or more of a panel of three appointed
stakeholder pension providers. Employer contributions were age related and ranged from 3 per cent to 12.5 per cent
of pensionable pay. Employers also matched employee contributions up to 3 per cent of pensionable pay. In addition,
employer contributions of £13,377 (2008–09: £12,844) representing 0.8 per cent of pensionable pay were payable to
PCSPS to cover the cost of future provision of lump-sum benefits on death in service and ill-health retirement.
No contributions were outstanding to the partnership pension providers at the balance sheet dates of 31 March 2010 and
31 March 2009.
62 LSC Annual Report and Accounts 2009–10