Kent Fire and Rescue Service
Audited annual statement of accounts 2020-21

The presentation of pension assets and liabilities within the accounts is a requirement of the legislation governing the preparation of these accounts.  The overall impact of recognising the Authority’s true net pension liability of £1,026,856k on the Balance Sheet has led to an overall negative balance of £874,634k.

The net pension liability for 2020/21 for firefighter pension schemes has increased by £190,462k to £981,088k. Movements on the pension liability can be quite volatile and are not only dependent on the assumptions used but also there is an impact depending on whether it is a full or roll-forward valuation. The Actuary for the firefighter pension schemes has carried out a full valuation for 2020/21. Changes to the financial assumptions included a reduction in the discount rate and an increase in the expectation of future inflationary pressures, resulting in an overall increase to the value of the defined benefit obligation. The reassessment of the net defined benefit liability has had a significant impact on the Comprehensive Income and Expenditure Statement resulting in a revised remeasurement of £190,882k in 2020/21 compared to (£116,020k) in 2019/20. 

Full details of the pension fund assets and liabilities can be seen at Note 25.