Decision details

The Committee considered a report setting out proposals for an initial approach to the 2016 Actuarial Valuation.

The Committee's attention was drawn to the table on page 29 of the agenda which set out the key assumptions made and what had happened since the last valuation in 2013.

It was noted that this valuation was likely to be more difficult than the previous one due to the current pressures on local government finance.

The report set out a timetable for the valuation process which had commenced in September 2015 with the planned approach being agreed with Mercers, the Fund's Actuary, and which, it was proposed, would conclude in April 2017 with the revised contribution rates and revised Funding Strategy Statement in place.

It was reported that the overall objective for the Fund for employer contributions was, at the whole fund level, to maintain, in cash terms, the contribution plan set in 2013. The report also set out the proposed objectives in terms of:

-  The deficit recovery period;

-  Key assumptions around pay increases, life expectancy and take up of the 50/50 option;

-  Employer risk;

-  Academy Schools;

-  Ill health retirement.

During the discussion particular reference was made to the impact on employers of reducing the deficit recovery period from 19 to 16 years, and the impact of fewer scheme members due to changes in the size of the local authority and wider public sector workforce. It was clarified that the detailed methodology for the process would be determined by the Fund Actuary and would be reported to the Committee in due course.

Resolved: - That the Fund's initial position in relation to the 2016 valuation set out at Appendix 'A' to the report, now presented, be approved as the basis for consultation and engagement with fund employers.