Agenda item

The Committee considered a report of the Corporate Director of Resources which provided Members with information on the final outcomes from the actuarial valuation of the Pension Fund as at 31 March 2016 (for copy see file of Minutes).

The report gave details of the following:-

·         Past Service Position as at 31 March 2016 alongside the results from the previous two valuations

·         Costs to Employers of Future Benefits as at 31 March 2016 compared to the previous two valuations

·         Overall membership

The position had deteriorated since the previous valuation, mainly as the increase in the value of liabilities was more than the increase in the value of the Fund’s assets. The scheme was maturing and the proportion of liabilities had increased as employees retired from the authority.

Members were given a funding update as at 31 March 2017 provided by the Actuary which gave an overall view that the funding level had improved from 81% to 87% over the year since the valuation date, but the total expected employer contribution rate had remained broadly the same. This was due to the asset return over the year being better than expected, although this was offset by a reduction in the discount rate (the Actuary’s view of future long-term investment returns) increasing the cost of providing benefits from the scheme.

Resolved:

That the contents of the report be noted.