TRUSTEES' REPORT AND ACCOUNTS 2014
32 Notes to the accounts (continued)
YEAR ENDED 31 DECEMBER 2014
19 RELATED PARTY TRANSACTIONS
Transactions with related parties not disclosed elsewhere in the Accounts are set out below.
RSPCA branches are separately registered charities. The Society has an arm's length trading relationship with all branches. Loans and
grants are made when charitable objectives delivered by the branch would be enhanced (see note 5c). Branches are represented on the
RSPCA Council by members elected from the regions (see page 37). Following the departure of the Society's Chief Executive Officer, two
trustees - Michael Tomlinson and David Canavan - have been acting in an executive capacity. David Canavan is a trustee of the RSPCA
Rochdale and District Branch. At 31 December 2014 the Society had a loan outstanding to the Rochdale and District Branch of £95,363.
Since the year end a further loan of £50,000 was advanced and repayments of £85,105 received. The loan was approved by Council.
No loans existed with the RSPCA Leicestershire Branch of which Michael Tomlinson is a trustee. Where a branch ceases to be under
active management, Council may appoint temporary trustees from the Society to ensure that the affairs of the branch continue to be
administered. Details of branches under Council trusteeship in 2014, and the related party transactions, are set out below.
BRANCH
Date in Council
Trusteeship
Amount paid
to branch by
Society 2014
£
Amount paid
to Society by
branch 2014
£
Balance owing
to the Society
£
Stafford, Wolverhampton and District 27/08/2008 17,102 11,000 146,066
Bedfordshire North 01/09/2010 18,262 300 29,913
Chiltern 01/09/2010 25,653 300 26,946
Wrexham District and Deeside 05/09/2011 17,102 5,500 13,700
Brecknock & District 04/07/2012 17,102 20,000 1,096
Isle of Thanet 17/10/2012 17,920 300 1,824
Ealing and Hounslow 04/12/2012 17,102 300 825
Isle of Wight 01/08/2013 17,102 1,100 10,924
Croydon, Crystal Palace and District 04/09/2013 17,102 1,100 445
Sussex, Chichester and District 17/04/2014 17,102 300 178,643
20 PENSIONS
The RSPCA operates a pension scheme which has two sections. One, closed to new entrants, provides benefits on a defined benefit
basis and an open section providing benefits on a defined contribution basis. The scheme is under the control of an independent
trustee company. Details of each section are provided below.
Defined contribution section
The defined contribution section was established on 1 April 2008. The Society contributes 11% of salary for scheme members who opt
out of smart pensions and 15.5% of salary for all other members. The employee contribution is 4.5% of salary for members who opt out
of smart pensions and nil for all other members. In 2014, the Society's contribution to the section was £1,580k (2013, £1,636k). There were
no outstanding contributions at year end.
Defined benefit section
In order to manage a pension fund deficit, the defined benefit section was closed to new employees from 1 April 2008. Also at that
point, the section was altered from a final salary to a career average benefit and annual increases in pension payments (linked to the
retail price index) were capped at 2.5%.
The Society contributes 15.1% (10.8% until July 2013) of salary for scheme members who opt out of smart pensions and 21.1% (16.8% until
July 2013) for all other members. The employee contribution is 6.0% of salary for members who opt out of smart pensions and nil for all
other members. In 2014, the Society's contribution to the section was £3,831k (2013, £2,676k). In addition, as part of the recovery plan to
address the defined benefit deficit, a further contribution of £2,000k (2013, £11,950k) was made. There were no contributions outstanding
at year end.
The section is valued annually as at 31 December for the purpose of the accounts. This valuation is carried out under specific accounting
rules (FRS17) so that the pension liability can be accounted for on the Society's balance sheet. Details of this valuation are set out below.
In addition, the scheme is subject to a triennial valuation which provides the basis for agreeing future contribution levels. The latest
triennial valuation was carried out as at 31 March 2012. Further details are provided in the financial review.
Security of assets
The assets of the scheme are held separately from those of the Society and are invested in a wide range of securities, as set out in the
following disclosures.
NOTES TO THE ACCOUNTS