Decision details

The Committee considered the Fund's revised Funding Strategy Statement which followed the results of the 2010 formal actuarial valuation of the Fund as noted by the Committee on 10 December 2010.

It was noted that the proposed Funding Strategy Statement had been communicated to employers at the Directors Briefing held on 14 December 2010 and consultation was underway with individual Fund employers in respect of their individual employer contribution rates and the options available to them via the revised Funding Strategy Statement.

The Committee's attention was particularly drawn to Section 5 of the Funding Strategy Statement which set out the deficit recovery plan.  Members were asked to agree that the Treasurer to the Lancashire County Pension Fund be authorised to use her discretion where an individual employer wished to deviate from the deficit recovery plan as set out within the revised Funding Strategy Statement, subject to any deviation not impacting on the overall prudent management of the Fund.  Such action would only be taken in exceptional circumstances and details would be reported to the Committee.

It was agreed that the Committee need to strengthen its monitoring of investment activity against performance targets, as well as risk management issues.  A report on these matters would be presented to each meeting of the Committee.

Resolved: 

1.  That the revised Funding Strategy Statement be approved.

2.  That the Treasurer to the Lancashire County Pension Fund be authorised to use her discretion in exceptional circumstances where an individual employer wishes to deviate from the deficit recovery plan as set out within the revised Funding Strategy Statement, subject to any deviation not impacting on the overall prudent management of the Fund.

3.  That a report on any actions taken under 2. above be presented to the subsequent meeting of the Committee.