Agenda item

Consideration was given to the report of the Interim Corporate Director Resources which informed Members of the overall value of the Pension Fund as at 30 June 2016, and of any sums available to the Managers for further investment or amounts to be withdrawn from Managers (for copy see file of Minutes).

Following questions from Councillor Davinson about negative cash flow, Nick Orton advised that cash flow was affected by factors such as the changing ratio of pensioners to active members and a fall in employee levels, but should not be of great concern as long as it was carefully managed. The Actuarial Valuation had identified a need for an increase in employer contributions from April 2017 and this would have a positive impact on the Fund’s cash flow position.

Councillor Davinson also asked about the potential impact of a larger than forecasted number of retirements in the employing authorities. Nick Orton advised that this should not materially affect the forecasted position because the cash flow forecast was for the whole Fund.

Councillor Davinson referred to re-balancing and expressed concern that funds were withdrawn from Managers who were performing well and given to poorer performing Managers to support the working cash balance of the Fund. The Member was informed that the fixed percentage approach to asset allocation would be examined as part of the review of the Investment Strategy.  

Resolved:

That the information contained in the report be noted.