Hartpury Annual Report July 2025

Notes to the Financial Statements (continued) Year Ended 31 July 2025

Teachers’ Pension Scheme

The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme governed by the Teachers’ Pensions Regulations 2014. These regulations apply to teachers in schools, universities and other educational establishments. Membership is automatic for teachers and lecturers at eligible institutions, although teachers and lecturers are able to opt out of the TPS. The TPS is an unfunded scheme and members contribute on a “pay as you go” basis. These contributions, along with those made by employers, are credited to the Exchequer under arrangements governed by the above regulations. Retirement and other pension benefits are paid by public funds provided by Parliament. Under the definitions set out in FRS 102 (Section 28.11), the TPS is a multi-employer pension plan. The Group is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the Group has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution plan. The Group has set out above the information available on the plan and the implications for the Group in terms of anticipated contribution rates. The valuation of the TPS is carried out in line with regulations made under the Public Service Pensions Act 2013. Valuations credit the teachers’ pension account with a real rate of return, assuming funds are invested in notional investments that produce that real rate of return.

The UK Government Actuary conducts a formal actuarial review of the TPS every four years. The aim of the review is to ensure scheme costs are recognised and managed appropriately, and the review specifies the level of future contributions.

As a result of the last scheme valuation, based on 2020 data, employer contribution rates were increased in April 2024 from 23.6% to 28.68% of pensionable pay. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover administration expenses.

The latest valuation report is available on the Teachers’ Pensions website. The next valuation, based on 2024 data, is expected to take effect in 2027.

The pension costs paid to the TPS in the year amounted to £3,060,014 (2024: £2,605,741).

Local Government Pension Scheme

The Gloucestershire Local Government Pension Scheme (LGPS) is a funded defined benefit plan, with the assets held in separate funds administered by Gloucestershire County Council. The total contributions made for the year ended 31 July 2025 were £3,264,067 (2024: £3,354,184), of which employer contributions totalled £2,536,907 (2024: £2,642,312) and employee contributions totalled £727,160 (2024: £711,872). The agreed contribution rates for future years are 21.8% for employers, while employee contributions range from 5.5% to 12.5%, depending on salary, according to a national scale.

The following information is based on a full actuarial valuation of the fund at 31 March 2023, updated to 31 July 2024 by a qualified independent actuary.

At 31 July 2025

At 31 July 2024

3.25%

Rate of increase in salaries

3.25%

2.75%

Future pension increases

2.75%

5.85%

Discount rate for scheme liabilities

5.00%

2.75%

Inflation assumption (CPI)

2.75%

50.00%

Commutation of pensions to lump sums

50.00%

65