and intangible fixed assets which are equal to the net book value of those assets of £1.5 million (2020: £1.9 million). The negative pensions reserve as at 31 March 2021 was £29.0 million (2020: £19.1 million) and represents the provision in the accounts for future committed payments to a closed defined benefit pension scheme. The reasons for the increase in this negative reserve are explained in the pension section which follows. Each year, our trustee board reviews our reserves policy and considers the appropriate level of reserves for the organisation to hold. It considers the level appropriate for the current size and complexity of the organisation, the economic environment we’re operating in, the risks we’re currently managing and known investment plans above and beyond annual budgeted costs. Trustees also consider our current risk profile, balancing the need to reflect that risk, while making sure we’re not holding funds unnecessarily at the expense of committing funds to meet our charitable objectives. As a result of this year’s review, the trustee board, advised by the audit and risk committee and considering Charity Commission published guidance, decided to leave the basis of the reserves policy unchanged. The policy is to hold in free reserves the equivalent of 3 to 6 months’ core operating costs. This means the target range is now £10 million to £20 million (2020: £9 million to £19 million) due to a small movement in this cost base. Free reserves are defined as total unrestricted funds less designated funds. As of 31 March 2021, our free reserves totalled £17.6 million and so were within the target range. Pensions National Citizens Advice is the principal employer of a defined benefit multi-employer pension scheme. The other employers in this scheme are a small number of local Citizens Advice offices in London. The scheme was closed to new members and to future accrual in 2008. Each year these employers make contributions to the scheme towards the deficit. We remain committed to meeting our obligations in relation to the scheme and work closely with the Pension Scheme trustee board and its advisers. During the year, we reviewed the contribution levels, following completion of the formal triennial March 2019 valuation, and agreed a revised recovery plan for the scheme. In the revised recovery plan the employers will make total contributions of £2.3 million (of which national Citizens Advice pays £2.1 million) from £1.7 million per annum (of which national Citizens Advice paid £1.6 million) during the 2021/2022 financial year, with the view to eliminating the deficit by 31 March 2037. During 2020/2021 Citizens Advice 64 Financial review