The cost of retirement benefits in the reported cost of services is recognised when they are earned by employees, rather than when the benefits are eventually paid as pensions. However, the charge that is required to be made against council tax is based on the cash payable in the year, so the real cost of post-employment/retirement benefits is reversed out of the General Fund via the Movement in Reserves Statement. The following transactions have been made in the Comprehensive Income and Expenditure Statement and the General Fund Balance via the Movement in Reserves Statement during the year.
| Table 31b | 2024/25 £000's | 2025/26 £000's |
|---|
| Comprehensive Income and Expenditure Statement | | |
| Cost of Services: | | |
| Current service costs | 30,700 | 22,856 |
| Administration costs | 1,845 | 1,955 |
| Past service costs and settlements and curtailments | 932 | 1,035 |
| Financing and Investment Income and Expenditure: | | |
| Net interest expense | (2,070) | (13,578) |
| Interest on asset ceiling | 3,807 | 15,258 |
| Total Post-employment Benefit Charged to the Surplus or Deficit on the Provision of Services | 35,214 | 27,526 |
| Other Post-employment Benefits charged to the Comprehensive Income and Expenditure Statement | | |
| Remeasurement of the net defined benefit liability comprising :- | | |
| Return on plan assets | 23,332 | (83,657) |
| Actual (Gain)/Loss arising on changes in demographic assumptions | (4,804) | (655) |
| Actual (Gain)/Loss arising on changes in financial assumptions | (197,343) | (422) |
| Other Experience (Gain)/Loss | (1,820) | (10,383) |
| Effect of asset ceiling | 181,569 | 60,565 |
| Total Post-employment Benefit Remeasurments - Net (Gain)/Loss - Charged to Statement of Other Comprehensive Income and Expenditure | 934 | (34,552) |
| Total Post-employment Benefit Charged to the Comprehensive Income and Expenditure Statement | 36,148 | (7,026) |
| Movement in Reserves Statement | | |
| Reversal of net charges made to the Surplus or Deficit on the Provision of Services for post-employment benefits in accordance with the Code | (35,214) | (27,526) |
| Actual amount charged against the General Fund Balance for pensions in the year: | | |
| Employers' contributions payable to the scheme | 41,392 | 43,855 |
The amount included in the Balance Sheet arising from the council's obligation in respect of its defined benefit plans is as follows: