Agenda item

Consideration was given to the report of the Corporate Director, Resources which gave details of the overall value of the Pension Fund as at 31 December 2011, of the additional sums available to the Managers for further investment, and of the latest Fund Rebalancing (for copy see file of Minutes).

Members were advised that as agreed at the last meeting a ‘modelling exercise’ had been undertaken in view of the deficit in cash flow. It had been agreed that for the reasons outlined in the report no money be added to the sums allocated to the Managers for investment in the quarter ended 31 March 2012. It had also been decided to suspend this quarter’s rebalancing for examination at the end of the next quarter. The report also gave details of the forecasted cash flow for the Pension Fund for 2012/2013 and the assumptions used to calculate this. The position would be reviewed at the end of each quarter.

A Member referred to employer contributions and the potential effect on the Fund from any late payments. Nick Orton, Payroll and Pensions Manager stated that following the review of contributions undertaken as part of the Internal Audit Plan 2011/2012, processes would be put in place to improve how payments were monitored. However he added that there were currently no material issues which would affect the cash flow position of the Fund.

A Member also sought an assurance that any ER/VR costs as a result of Local Government Reorganisation (LGR) were met from LGR transition costs. Hilary Appleton, Strategy Finance Manager – Corporate Finance confirmed that this was the case but would examine the current position and report to Members direct.

Resolved:

That the information given, be noted and Members be provided with feedback in relation to Early Retirement/Voluntary Redundancies as a result of LGR.