Agenda item

The Committee considered a report of the Corporate Director which presented the Council’s statement of accounts for the financial year ended 31 March 2023 that included the pension fund financial statements (for copy see file of minutes).

Councillor Kellett had studied the report and was concerned that more people were aged between 50-65 years old that were drawing on their pensions.  He queried what implications this would have on Durham County Council.

P Darby replied that there were far reaching implications on Durham County Council especially with the increased pressures on Social Services, within the domiciliary care teams as people were living longer and wanting to remain in their own homes wanting to live long and independent lives.  He noted that Durham County Council invested in young people through apprenticeship schemes to reflect the demographics in the workforce and had succession and workforce development plans in place to recruit younger people into the organisation.

Mr I Rudd stated that there was lot of information included in the report that included a large single movement with gains and losses in the pension.  He questioned what this related to.  

In response to Mr I Rudd P Darby advised that this was in part due to the triennial re-evaluation that was reflected in the accounts.  Durham County Council influenced the investment strategy that the pension committee had adopted as they were the custodians. 

Mr I Rudd queried if the aging population would reduce or increase the ongoing liability of people living longer.

C Waddell, Mazars confirmed that the liability would be stable from the pension fund perspective but that interest rate changes had a bigger impact and may affect returns. These were matters that would be discussed in the Pension Committee. 

Mr I Rudd queried what would happen if the interest rates went down.

C Waddell, Mazars advised that if interest rates went down then the investments would be revalued and that this particularly impacted on Government Bonds / Gilts.

P Darby was happy to arrange for a Pension Officer to come to a future meeting to provide a briefing on pensions and the valuation process.

Resolved:

That the report be approved.